Astrea’s portfolio construction principles and key product features

WE REFER to the Financial Times article by Kaye Wiggins, “Collateralised fund obligations: How private equity securitised itself”, reproduced by The Business Times on Nov 25. We thank the writer for highlighting the credit strengths of the Astrea Private Equity (PE) Bonds. 

Your readers may be interested in the portfolio construction principles and key product features of the Astrea PE Bonds, that have enabled investors to have exposure to investment-grade bonds backed by PE cash flows. 

Well-diversified portfolio 

The Astrea PE Bonds are each backed by cash flows from a large, diversified pool of more than 30 seasoned PE funds underpinned by 600 to 1,000 companies at launch. This level of diversification offers good cash flow protection for bondholders, even if some companies should underperform.