HCM advises on primarily portfolios of Secured Loans and Bonds to Corporates and Infrastructure Projects.
As one of the largest participants in the primary market for European bank loans, HCM is invited to participate in the major syndicated loan transactions being offered in the market. HCM maintains an active dialogue with all of the principal arranging and underwriting banks in Europe and the US. Our long history and strong performance track record in the market combined with size and ongoing strong relationships with the arranging and underwriting banks ensure HCM has no difficulty in accessing and selecting the transactions within the market which HCM deems appropriate investments for our clients.
We at HCM are attracted to these asset classes due to the high recovery potential of secured bank loans and bonds, noting the following:
- Senior Secured Loans, as the name suggests, benefit from a first priority interest in the security which collateralises a leveraged loan. Such security typically includes pledges over shares, bank accounts, receivables, and also mortgages over property.
- Typical covenants restrict payments to subordinated creditors/shareholders.