Sound Point Meridian Capital, Inc. (SPMC)

Sound Point Meridian Capital, Inc. is a closed-end management investment company listed on the New York Stock Exchange. Sound Point Capital Management, a credit-focused asset manager, advises the fund.

Its main objective is to generate high current income, with capital appreciation as a secondary goal. To pursue this, the fund invests mainly in the equity and junior debt tranches of collateralized loan obligations (CLOs). CLOs are vehicles that hold diversified pools of senior secured loans made to corporate borrowers, mostly in the United States.

The adviser picks CLO investments by studying the underlying loan portfolios, the CLO managers and the structure of each deal. The fund buys positions both when new CLOs are issued and in the secondary market.