CLOs are selling at a feverish pace — even with weak profits. Here’s why investors are betting on them. https://t.co/9BdHVbG8Xb ...

Portfolio Strategy - Brown Brothers Harryman focuses on finding and growing value for clients managing money on a generational basis [3] - The firm's portfolio construction includes approximately 30% in fixed income, 40-45% in public equities diversified globally, and a significant focus on alternative investments [4] Alternative Investments - The firm is finding value in structured credit within fixed income, including asset-backed securities, CLOs, CNBS, and RMBBS, which are typically accessed privately [6] - Single A rated tranches of structured credit vehicles are delivering 200 basis points (2%) more return than corporate equivalents, with historical capital preservation [8] Municipal Bonds - High-quality municipal bonds with a duration of four to five years, funding America's infrastructure, can generate returns around 7% on a tax-equivalent basis for high-income earners in high-income tax jurisdictions [9][10] Stock Selection - The firm invests in long-term durable businesses with massive competitive advantages, including some of the "Mag Seven" companies [11] - Specific companies mentioned include Microsoft (due to Azure's growth in AI), Mastercard, Visa, and Transdime [11][12] - Transdime, an aerospace aftermarket company that IPOed in 2006, has compounded in excess of 30% since then [13][14]