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Ameriprise (AMP) Arm Expands CLO Platform Through Partnership

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Ameriprise Financial’s (AMP - Free Report) unit – Columbia Threadneedle Investments ("Columbia Threadneedle") – has announced an investment agreement aimed at bolstering its collateralized loan obligation (CLO) platform. This initiative, arranged with a consortium of investors led by Jefferies Financial (JEF - Free Report) , includes AMP among its key participants.

The agreement signifies a significant milestone in Columbia Threadneedle's commitment to strengthening its foothold in the fixed-income landscape. By leveraging the consortium's equity capital, Columbia Threadneedle intends to fuel the issuance of multiple CLOs over the coming years.

This strategic move not only solidifies the existing relationship between JEF and Columbia Threadneedle but also paves the way for the firm to emerge as a prominent player in the realm of CLO issuance.

Columbia Threadneedle's bank loan team, responsible for managing $4 billion in assets, boasts a cadre of seasoned portfolio managers, research analysts and traders dedicated to navigating the intricacies of CLOs and other loan funds. Their investment strategy revolves around rigorous fundamental credit research, underpinned by the expertise of the firm's expansive fixed-income research team, comprising more than 80 professionals.

With more than $238 billion in fixed-income assets under management across various strategies, Columbia Threadneedle is well-positioned to capitalize on the opportunities presented by the CLO market.

Stanton Ray, Head of U.S. Loan Platform at Columbia Threadneedle, expressed enthusiasm about the partnership, highlighting its potential to propel the firm's CLO business forward and broaden its investor base within this vital asset class.

As Columbia Threadneedle continues to fortify its presence in the fixed-income arena, this partnership underscores its commitment to delivering value and expanding opportunities for investors seeking exposure to CLOs and related investment vehicles.

This will, in turn, support Ameriprise’s financials over time. The company constantly modifies its product and service-offering capability to keep pace with dynamic market needs. This strategy, along with asset growth, helped it witness a rise in the top line historically. The company’s efforts to launch products are likely to keep supporting net revenue growth in the quarters ahead.

Shares of AMP have rallied 21.3% over the past six months, underperforming the industry’s growth of 24.5%.
 

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Currently, Ameriprise carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Finance Firms Taking Similar Actions

Earlier this month, Blackstone Inc. (BX - Free Report) entered into a partnership with BNP Paribas SA (BNPQY - Free Report) to form a new fund financed by French individuals. The fund will aim to invest in companies in private debt.

BX’s vehicle, dubbed “Blackstone Credit Privé Europe SC,” aims to tap into the large pool of savings held by French retail investors via the country’s most popular tax-efficient life insurance product.

The companies said that clients of BNPQY’s private bank unit and insurance division would benefit from an exclusivity period ending on Apr 5 to invest in the fund.

Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.

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