Established in March 2000, HCM is one of Europe's leading investment advisors of secured bank loans. We are dedicated to deep fundamental, long term analysis of sub-investment grade corporates and investment grade infrastructure debt. Harbourmaster Capital Management Ltd advises in respect of approximately EUR 8.0 billion of senior secured loans and infrastructure debt.
Please find attached Harbourmaster's Pillar 3 disclosure policy statement.
INVESTMENT PHILOSOPHY
Harbourmaster has maintained a focus on lower volatility assets:
- Senior Secured Bank Loans
- Investment Grade Infrastructure Loans and Bonds
-Senior Secured Loans:
Large Loan Focus
Focus on secured loan syndications (secured syndicated loans to larger companies). Large syndicated loans attract the highest levels of due diligence from the marketplace and typically achieve superior credit ratings with the strongest likelihood of upgrade. As a senior secured lender, we consider that a focus on investment grade quality businesses (which are sub-investment grade only because of financial leverage rather than lack of critical mass, diversification, etc.) is most likely to lead to significant recoveries for senior secured lenders in a restructuring. Strong qualitative and quantitative analysis resulting in a high turndown / rejection rate.
Fundamental analysis of the borrower, its industry and its management
Quantitative analytics: All loans are 'valued' based on default probability and recovery expectation. Ongoing monitoring via monthly management accounts, quarterly compliance certificates, annual budgets and financial statements and regular site visits and conference calls with management.
Stable long-term returns
HCM's overall performance aim is to achieve stable long term returns for each client it advises in line with initial expectations. We believe our performance to be amongst the best and most consistent of any European Loan Manager and we have experienced credit management throughout a full credit cycle.
Infrastructure Loans and Bonds:
HCM provides long-term institutional investors with bespoke managed accounts and co-mingled funds that invest in the long-term, investment grade debt issued by infrastructure projects. Infrastructure debt provides long duration investors stable, investment grade cashflows in fixed and/or index-linked format allowing the more accurate defeasance of long term liabilities.