Risks and Opportunities in Structured Credit
About This Episode
My guest, Sam Reid, is here to discuss the role and impact of structured credit within a retail investor portfolio. In an environment of rising rates and accumulating debt, this asset class offers investors a chance to alleviate risks and further enhance their portfolios.
Sam uses a process-driven approach to minimize the impact of rising rates, and his underwriting standards allow for enhancements to be built into securities. He focuses on short-duration investments.
About Our Guest
Sam Reid, based in the Dallas-Fort Worth area, is a partner and a portfolio manager of the River Canyon Total Return Bond Fund (RCTIX). He joined Canyon in 2008. Prior to this role, Sam served as Head Debt Trader for Canyon’s investments across the firm’s global platform.
Before joining Canyon, Sam spent seven years at JPMorgan Chase as a sell-side High Yield Credit trader, where he traded CDS and high yield bonds in both a market making and proprietary trading capacity.
He is a graduate of Georgetown University (dual B.S., International Business and Finance). Sam is a CFA® charterholder.
The River Canyon Total Return Bond Fund is a credit-oriented mutual fund that seeks to maximize total return via income and capital appreciation.
The management team, led by Sam, employs a bottom-up credit selection process with a top-down overlay and aims to identify securities that exhibit upside optionality with downside protection. The fund does not seek market-directional risks and instead focuses on selecting securities with a likelihood of outperformance across a wide range of macroeconomic and market scenarios. This strategy is designed to provide investors with exposure to a sector that has historically low correlation to traditional asset classes.
Investable sectors for the fund include:
- Agency & Non-Agency Residential Mortgage-Backed Securities (RMBS)
- Agency Collateralized Mortgage Obligations (CMOs)
- Commercial Mortgage-Backed Securities (CMBS)
- Collateralized Loan Obligations (CLOs)
- Re-Performing Loans (RPLs) / Non-Performing Loans (NPLs)
- Asset-Backed Securities (ABS) – Auto, Aircraft, Credit Card, Student Loans, etc.
- Corporate Debt
Here are some links to learn more about Sam and the funds we discussed:
- River Canyon Fund Management- https://www.rivercanyonfunds.com/about/
- River Canyon Total Return Bond Fund Overview- https://www.rivercanyonfunds.com/total-return-bond/
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