The Apollo Tactical Income Fund will invest at least 80 percent of it assets in loans, bonds, distressed debt, mezzanine securities and structured products, including collateralized debt obligations, according to a filing today with the Securities and Exchange Commission.
Apollo, which had assets under management of $113 billion as of Dec. 31, previously raised a closed-end fund in 2011, according to a statement. There was $3.9 billion of net inflows into loan mutual funds in January, according to data from Morningstar Inc. (MORN)
Morgan Stanley (MS) and Citigroup Inc. led a group of underwriters for the fund, according to the prospectus. Closed- end funds have a fixed number of shares.
Leveraged loans and high-yield bonds are rated below BBB-by Standard & Poor’s (MHP) and less than Baa3 at Moody’s Investors Service. (MCO) CDOs pool high-yield, high-risk bonds and slice them into securities of varying risk and return.
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