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June 29, 2018  

Hedge Fund Taps Jefferies to Lead Rare CBO

Industry professionals are abuzz over a rare collateralized bond obligation that Jefferies is structuring on behalf of a small hedge fund operator.

The issuer, RVX Asset Management of Aventura, Fla., invests in emerging-market debt and equity. Sources said the deal’s collateral pool would be made up of corporate bonds from developing countries. The exact size and timing of the offering are unknown.

“In a lot of countries, loans aren’t available, so it’s pretty much bonds if you want to get exposure,” one investor said. “The yields would be pretty good on something like that, so I imagine they will find someone to buy them.”

The transaction marks RVX’s debut as a structured-product issuer. The firm, founded in 2015, had $148 million under management or advisory on May 31.

Spearheading the effort is Mike McAdams, head of marketing and investor relations. McAdams is a veteran of the collateralized loan obligation market, having played a role in setting up some of the earliest issuance programs at Four Corners Capital, ING and Pilgrim Group.

RVX is led by Ray Zucaro.