Distinctive Offering

Founded in 2011, CCI is one of the world’s most active credit managers of liquid, high-grade credit

• USD 8.7 billion AUM across a long-standing diversified client base of institutional and retail investors.
• Active bond traders – executed ~USD 65 billion globally since 1 Jan 2024.

Highly Experienced Team

Comprising 47 executives including 11 full-time portfolio managers & traders and 15 full-time analysts

• Seasoned team with decades of experience in fixed-income management, trading, quantitative and credit research capabilities.
• Focus on generating alpha in liquid, high-grade credit without taking interest rate risk.

Activist Approach

Striving to effect real change

• CCI is signatory of the UN-supported
• Principles for Responsible Investment
• Dedicated six-person research team with joint responsibility for proprietary ESG research and portfolio integration

The existential choice – add value or add risk?

CCI focuses on trading high-quality bonds to reduce idiosyncratic risks

EQUITY BEFORE EXCHANGES

Cash bonds are highly inefficient

• Most investment-grade fixed income is traded OTC and by “voice”.
  • No transparent central exchange or mandated price disclosure.
  • Leads to highly opaque/inefficient asset pricing.
• Limited use of quantitative models for real asset valuation analysis.
  • Assets more commonly priced off crude appraisal/qualitative judgement.
  • Explains under-investment in credit and quantitative research.

PASSIVE CAPITAL

Inefficiency compounded by proliferation of “passive” styles

• Most “active” fixed income managers are very passive, “buy-and-hold” investors.
  • Function of predominance of passive fees for active styles.
  • Prevalence of closet indexers.
• Investors are typically overdiversified.
  • Diversification can unwittingly increase credit default risk and losses.

REGULATORY REFORM

Regulatory reform since the 2008 crisis has changed credit markets

• Dodd-Frank Act / Volcker Rule has forced banks to scale back proprietary trading.
• Basel III has reduced the ability of banks and market-makers to hold inventory on their own balance sheets.
  • Bank warehouses have virtually disappeared.
• Market-makers also constrained from holding certain types of debt securities.