Babson Capital Management, an investment management firm based in Massachusetts and North Carolina, has closed five collateralized loan obligations with more than USD1.7bn under management.

Included in the transaction are Victoria Falls CLO, Diamond Lake CLO, Clear Lake CLO, Summit Lake CLO and St. James River CLO.

The transaction raises Babson Capital’s total of high yield assets under management – which includes bank loans and high-yield bonds in a variety of accounts and funds – to USD19.3bn.

Babson Capital assumed the role of replacement collateral manager of the CLOs, whose underlying collateral consists primarily of bank loans, from Jefferies Capital Management, a subsidiary of Jefferies Group.

As part of the transaction, three Jefferies Capital Management employees directly involved with the five funds join Babson Capital: Mark Senkpiel as portfolio manager for the funds and a managing director, Kimberly Atkinson as a director, and Alyssa Tabora as an associate director.

“We are honoured to have Jefferies Capital and other investors across the CLOs choose to place their confidence in Babson Capital," says Russell Morrison (pictured), a managing director and head of high-yield investments for Babson Capital. “We believe this transaction is a win for all parties involved.”

Including the Jefferies CLOs, Babson Capital has been named replacement collateral manager for 21 CLOs with a total of nearly USD6.5bn under management.