One form of debt is investor-friendly right now; another is not. Investors must identify the main difference. Coleman Andrews RMWC describe in details about the visible difference in between senior and junior credit.
As high-yield indexes hit highest levels, RMWC's Coleman Andrews explains well-defined variations between senior and junior credit. The values a variety of threat assets reach or are flirting with all-time or current high levels. The S&P 500 has set up quite a few recent records, and most high-yield debt indices are trading at the considerable premium to par. However, the risk/return metrics for senior secured debt and junior high-yield debt look completely different at this moment. Why? Do you know the benefits for investors?
In accordance with Coleman Andrews, since the spring of 2009, the Fed made junior credit investing a comparatively cheerful task. The combination of Zero Interest Rate Policy and bond purchasing by the Fed has generally worked to drive up the prices of junior credit assets. Hundreds of billions of dollars have flowed into the high-yield sector alone as investors have sought nominal return to replace what they once could reasonably expect from traditional fixed-income investments. Demand has driven a robust appetite for new issues, in turn driving the high-yield indices into premium territory.
While talking more info on this subject Coleman Andrews stated, "During the same period of time, a very different picture has evolved in the middle market, senior secured loans sector. Supply has contracted as a lot of large banking institutions happen to be merged out of existence, and as mega-banks and super-regional have battled to deliver. At the same time, CLOs and hedge funds are no longer the original source of adequate funds that they were in the year 2006 and 2007 for the middle market sector."
It really is a story of two market segments, leaving investors to ponder which one is mispriced. In late March, junior high-yield bonds were offering an average of 6.35% while senior secured middle market loans were offering 6.83%. The bonds are generally fixed rate no inflation protection there while the middle market loans are variable rate tied to LIBOR. The bonds represent higher risk due to advantage 1.27% of yield for every unit of advantage while the middle market loans earn 1.75% of yield for every unit of advantage. Data from Moody’s and S&P for 1987-2009 show that junior bonds tend to fare more poorly in a default situation, recovering an average of 29% of principal versus an 86% recovery for middle market loans. Terms and conditions are also very different: the bonds are typically covenant-light whereas the middle market loan tends to have muscular covenants that favor the lender.
Coleman Andrews RMWC further added, "Over-all, one market is featuring paper which is extremely borrower-friendly. Other market is delivering credit that is incredibly in the favor of the lenders. The prudent investor will need to consider which type of paper is much more investor-friendly."
Coleman Andrews's end goal is to present authentic professional services for every customers, fellow workers as well as investors. Through RMWC, it exemplifies realistic guidance by regularly being warm, participating, pleasant and additionally caring. They do anything so that the clientele financial needs are achieved. RMWC is a private investment firm that specializes in three strategies: private credit, absolute return, and secondary purchases of private equity. Each of the RMWC strategies can entail direct investment, co-investment with other professional investors, or fund investment with managers.
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Coleman Andrews RMWC is a private investment firm, which specializes in three strategies: private credit, total return, and secondaryrchases of private equity. Each of the RMWC strategies may include direct investment, co-investment with other experienced investors, or fund investment with managers.
The company is a idea of T Coleman Andrews III and is also a licensed Investment Counsellor with the U.S. Securities and Exchange
Commission. RMWC is advised by, among others, the former portfolio manager of a $17 billion credit-focused multi-strategy fund, and by the current CEO of a $16 billion university endowment.
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During the fifteen years, that previous Massachusetts Governor Mitt Romney performed a full time job at Bain Capital, the Boston investment firm he co-founded back in 1984. He developed a large number of partners with Coleman Andrews and others through the private equity realm, “Mitt recognized and worked with a number of the top figures in the marketplace, many of which are still active at present,” says Geoffrey Rehnert, Co-founder of the Audax Group. A Boston PE Firm shared the same tenure at Bain Capital as Mitt Romney. “Mitt is globally honored by all as sharp, honorable and extraordinarily capable,” Says Rehnert, who had been helping Romney’s Presidential Bid.
Here is a close look at Rehnert as well as some of Romney’s some other Bain contemporaries who are even now involved with PE today, and certain younger PE investors with close connections to the candidate. Keep watch over these people; they may have the ear of future President.
T. Coleman Andrews
Romney chosen T. Coleman Andrews in 1979 to work at Bain & Co. and after that tapped him for helping establish Bain capital as a Co-Founder. Andrews left the firm in 1986 to work as the CEO of World Airways INC., a service provider of long-range passenger and cargo air transportation services.
Andrews is presently the CEO of San Francisco based Rocky Mountain Wealth Concepts, which handles capital for high net worth individuals and invests in private equity firms. He serves as an industry expert to a few PE firms, including Trilantic Capital Partners. From 2005 to 2012, Andrews have also been CEO of a Financial Services Firm.
Andrews happens to be an active republican. From 1994 to 1997, he ran for the office of Lt. Governor of Virginia, ultimately pulling out because of family responsibilities while leading the race, based on his biography on the Trilantic website.
Politics flows in his family. His Grand Father, who bore identical name, ran for US President as the States Rights Party candidate in 1956. As accountant, he had worked as commissioner of the internal revenue service under President Dwight Eisenhower however had stepped down, indicating his resistance to income tax.
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Mr. T Coleman Andrews III serves as the chief executive officer, Lead Investor, chief executive officer of financial, plus chairperson of Rocky Mountain Wealth Concepts. Mr. Andrews served as the chief executive officer at Rocky Mountain Wealth Concept from 2005 to 2012.
He co-founded Bain Capital, LLC in 1983 and served there from 1983 to 1986. From 1978 to 1982, Mr. Coleman Andrews progressed from an Associate to Partner at Bain & Company Inc. during a key stage in the development of the international strategy-consulting firm.
From 1998 to 2001, the government of Nelson Mandela to guide the proper, focused, and financial turnaround of South African Airways recruited Mr. Andrews. From 1994 to 1997, Mr. Andrews run for the office of Lt. Governor of Virginia, ultimately withdrawing because of family obligations while leading the race. During this time, Governor George Allen to Virginia's Commission for citizen empowerment hired him.
From 1986 to 1997, Mr. Andrews served as the Chairman or Chief Executive Officer of World Airways, Inc., where he led a turnaround while navigating the effects of the Gulf War and a severe industry recession. He served in The White House from 1975 to 1977, where he lastly served as a Staff Assistant to the President for Economic Affairs. While in South Africa, Mr. Andrews founded and built Sizawundiza Training Trust and he conceived and financed the building of the Alexandra Center.
Mr. Coleman Andrews serves as a Member of Global Advisory Board of Trilantic Capital Management LLC. He served on the Board of Directors of Intelidata from 1986 to 1997. He was awarded the Civilian Desert Shield/Desert Storm Medal in 1991 from the United States Air Force for volunteer service in the war zone during the Gulf War.
Mr. T Coleman Andrews III holds an M.B.A. from Stanford University Graduate School of Business, where he was named an Arjay Miller Scholar; and graduated magna cum laude from Dartmouth College in 1976, with high honors in Economics and as a Rufus Choate Scholar.
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Rocky mountain wealth concepts
certainly are a store investment advisory organization situated in San Francisco, California, great net worth consumers across the Nation.
T Coleman Andrews III, the co-founder of Bain Capital, a high-performing equity finance business in the last 25 years, built RMWC. The experience gained at Bain & Company and Bain Capital is central to RMWC’s investment principles.
RMWC leverages a universal network of main investment experts constructed over the past thirty years, to mix highly effective investment information, thorough investing discipline, and access to top-performing investment vehicles.
Contrary to the Wall Street custom of advising on other people’s money, the founders of RMWC are substantial principal investors in the strategies the firm employs. If an investment is not good enough for our money, it is not good enough for our clients’ money.
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Rocky mountain wealth concepts is an RIA located in San Francisco, California rocky mountain wealth concepts concentrates on other pooled investment vehicles and over 75% of their AUM is in some other pooled investment vehicles. Rocky mountain wealth concept is a real vision of T Coleman Andrews.
Coleman Andrews is the CEO and chief investment officer of rocky mountain wealth concepts (“RMWC”), a proprietary investment enterprise managing funds in equity and credit markets. RMWC primarily serves high net worth individuals and families, and their related investment entities.
From 2005 to 2010, Mr. Andrews had also been CEO of rocky mountain wealth concept, a financial solutions business, and he supported as a counsellor to a number of private equity finance funds. From 1998 to 2001, Mr. Andrews served the governments of president nelson Mandela and Thabo Mbeki of South Africa in leading the strategic, tactical, and financial turnaround of South African airways, a global company with 10,500 employees and operations in 34 countries.
From 1994 to 1997, Mr. Andrews ran for the office of lt. governor of Virginia, eventually withdrawing due to family obligations while leading the race. During this time, Governor George Allen appointed him to Virginia's commission for citizen empowerment, which developed the strategy that led to a successful overhaul of Virginia's welfare policies.
From 1986 to 1997, he was Chairman or CEO of world airways, in which he led an excellent turn-around while navigating the effects of the gulf war and a severe industry recession. Mr. Andrews was awarded the civilian desert shield/desert storm medal in 1991 by the United States air force for volunteer service in the war zone during the gulf war.
From 1983 to 1986, Mr. Andrews was co-founding partner of Bain capital, which has developed into one of the nation’s top private equity firms. Between 1978 and 1982, he progressed from associate to partner of Bain & company during a key stage in the development of the international strategy-consulting firm. Mr. Andrews served in the white house from 1975 to 1977, where he was ultimately appointed as staff assistant to the president for economic affairs. He holds an M.B.A. from Stanford University, where he was named an Arjay Miller Scholar, and he graduated, magna cum laude, from Dartmouth College with high honors in economics and as a Rufus Choate scholar.
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