Capital Allocators – Inside the Institutional Investment Industry Brett Jefferson – Inefficiencies in Structured Credit at Hildene Capital Management (First Meeting, EP.19)
May 25, 2020
Brett Jefferson, President and Co-CIO of Hildene Capital Management, shares his journey from lacrosse to finance, tackling structured credit strategies. He discusses the inefficiencies in bank trust preferred securities and the impact of the financial crisis on his career. Key insights include navigating today’s CLOs and adapting to market changes. Brett also reflects on mentors, life lessons from sports, and how personal hobbies enhance professional growth, making for a compelling blend of finance and personal anecdotes.
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From Trading to Academia
- After a failed attempt at independent futures trading, Brett Jefferson pursued a Master's in History.
- He then attended Kellogg's evening program, giving it his utmost effort.
Early Career and CBOs
- Brett Jefferson's career began at Smith Barney, where he was tasked with understanding CBOs, a new product at the time.
- This led him to Marathon Asset Management, where he developed a unique methodology for valuing CBOs.
CBO Valuation Methodology
- Brett Jefferson developed a methodology for valuing CBOs based on the value of the assets, the structure, and the option to break the deal.
- This approach focused on the future worth of assets rather than their current NAV.