Babson Capital Management LLC, a debt manager with $180.5 billion in assets, hired Michael Henderlong to lead its capital markets business.
Henderlong, who started in April, reports jointly to Cliff Noreen, president, and Russ Morrison, head of global fixed income, according to an e-mailed statement from Babson Capital. He will focus on expanding the firm’s relationships with new and existing counterparties, according to the statement.
Babson, which has offices in New York, Charlotte, North Carolina and Springfield, Massachusetts, is a unit of Massachusetts Mutual Life Insurance Co. Babson’s fixed-income group oversaw $141.5 billion as of Dec. 31, investing in high-yield, mezzanine and investment-grade debt, and structured credit, according to its website.
On May 3, the firm raised a $490.8 million collateralized loan obligation with Bank of America Corp., according to data compiled by Bloomberg. It was the eighth largest U.S. CLO manager by assets at the end of last year, according to a Feb. 28 Standard & Poor’s report. CLOs are a type of collateralized debt obligation that pool high-yield, high-risk loans and slice them into securities of varying risk and return.
Henderlong, a former head of new business development for leveraged and distressed loans at Morgan Stanley (MS), left the bank in October. He joined Morgan Stanley from Goldman Sachs Group Inc. in 2002, according to records from the Financial Industry Regulatory Authority. While at Morgan Stanley, he served on the board of directors of the Loan Syndications and Trading Association, the New York-based loan trade organization.
Henderlong declined to comment.
There have been $381.2 billion of leveraged loans raised in the U.S. this year, an increase from $223.2 billion during the same time period in 2012, according to Bloomberg data. There have been $31.6 billion of CLOs issued in the U.S. this year, according to Royal Bank of Scotland Group Plc data.
Leveraged loans and high-yield bonds are rated below BBB-by S&P and less than Baa3 at Moody’s Investors Service.
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