YouSaid · the spoken record

Thomas Majewski

lines on the record: 112
first: 2022-12-01
most recent: 2022-12-01
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“Enterprise, CLOs are really just private banks at the end of the day, but the average bond buyer isn't thinking about control rights when they're looking at a bond. They're trading something on the mortgage key on Bloomberg. They're worried about prepayments, maybe defaults, maybe rates, but they're not thinking, what are my rights as a holder? I'm along for the ride is typically the way things are. And what I knew is what these equity classes, if the majority agreed to do something, you could actually liquidate force a CLO to liquidate or unwind. Now it's at the equities option, not the debt holder's option, but the equity as proper equity rights should be. And we had, as we were winding these down, these old vehicles, someone called up, oh, I hear you can help with CLOs, and this was a 1998 vintage CLO. I remember TCW was the collateral manager and an insurance company not too far up the road here in a little insurance capital of Connecticut called”
2022-12-01 · Capital Allocators · Thomas Majewski – Empty Rooms: Masterclass on CLOs at Eagle Point Credit Management (Capital Allocators, EP. 284) · IDENTIFIED FROM THE TRANSCRIPT · source
“And others saw the opportunity The table. Syndicated loans, large To big American companies is a very attractive asset. And if I can get stable financing without having to worry about Marx, I think this will work quite well. And from there, I was asked to take over the new issue business where we were creating new CLOs. Needless to say, these were all cash flow CLOs that we were creating, and I've never ever in my career created a market value CLO. This is after Sarbanes-Oxley, but before Dodd-Frank. So if you think of the regulatory landmarks over our respective careers, as we got into this post-Sarbanes-Oxley world, there were rules about derivatives transactions, and things like that, one of the things we did back then, this was perhaps the first ever, the COOs, the equity class has a lot of rights, including the right to collapse a CLO or refinance a CLO or any number of important rights that are more accustomed to being an equity holder, a private equity holder and a private”
2022-12-01 · Capital Allocators · Thomas Majewski – Empty Rooms: Masterclass on CLOs at Eagle Point Credit Management (Capital Allocators, EP. 284) · IDENTIFIED FROM THE TRANSCRIPT · source
“With cash flow triggers. And thereafter, I promise you, you'll never hear about the prices. Factor again. Some people didn't like it. Of course.”
2022-12-01 · Capital Allocators · Thomas Majewski – Empty Rooms: Masterclass on CLOs at Eagle Point Credit Management (Capital Allocators, EP. 284) · IDENTIFIED FROM THE TRANSCRIPT · source
“portfolio. Now at the time the bank had over ten billion dollars Of exposure to these investments. The bank's market cap was only around thirty billion dollars. At the lows in 2002 A non trivial amount Task was to get the bank out of its senior exposure Complaints to the chairman Tranches were some of the biggest insurance Of the bank, and we were successful. Didn't take a loss and we didn't get a complaint. So Of our proposal”
2022-12-01 · Capital Allocators · Thomas Majewski – Empty Rooms: Masterclass on CLOs at Eagle Point Credit Management (Capital Allocators, EP. 284) · IDENTIFIED FROM THE TRANSCRIPT · source
“Simple as that. And at some point Days, the bank kept Top 75% of the CLO on their balance sheet and sold away the bottom 20 to 25% to third parties. had been Traditional or what you would call a margin style trigger that if the price Fell below a certain amount, the senior investor, the bank in this case,”
2022-12-01 · Capital Allocators · Thomas Majewski – Empty Rooms: Masterclass on CLOs at Eagle Point Credit Management (Capital Allocators, EP. 284) · IDENTIFIED FROM THE TRANSCRIPT · source
“Assets vary over time. If you invest in a mortgage pool or auto securitization, you start with a thousand, ten thousand, a hundred thousand loans, whatever it may be, and that's what you get. And you hope they all work out. And if they don't, the investors bear the consequence. Within a CLO, the portfolios continuously change. Different than everything else. And it started to pique my attention. Opportunity came to join a bank to actually deal with a problem Class jumped at the opportunity.”
2022-12-01 · Capital Allocators · Thomas Majewski – Empty Rooms: Masterclass on CLOs at Eagle Point Credit Management (Capital Allocators, EP. 284) · IDENTIFIED FROM THE TRANSCRIPT · source
“Usually, your client is the controller or the CFO out of whatever firm you might be working with. And if you get a job with one of your clients, which is a pretty common thing at accounting firms, you're going to be working as the deputy controller or something like that. We were very fortunate. Our clients were the investment bankers and the front office investment bankers. So whereas JP Morgan turned me down for a back office job out of college, I was invited to join them in a front office role as a vice president. And I was brought in. A program of marketing. That the bank had created in the nineteen nineties. I had been involved in modeling CLOs when I was an accountant, and one of the things that always intrigued me about them, unlike most other forms of securitization,”
2022-12-01 · Capital Allocators · Thomas Majewski – Empty Rooms: Masterclass on CLOs at Eagle Point Credit Management (Capital Allocators, EP. 284) · IDENTIFIED FROM THE TRANSCRIPT · source
“So they moved me to this group. Thankfully, I could model alone or Amortize a mortgage in Lotus 123 and that gave me an immediate edge over many other people in this group who were still grappling with principle and interest and all the silly calculations you have to do. But from just stumbling in to this literally by ticking a box I didn't fully appreciate, I got into something I knew how to do. And that was really enjoyable. As an accountant,”
2022-12-01 · Capital Allocators · Thomas Majewski – Empty Rooms: Masterclass on CLOs at Eagle Point Credit Management (Capital Allocators, EP. 284) · IDENTIFIED FROM THE TRANSCRIPT · source
“I was a little nervous. Oh, come with us. Everything was In securitization, we'd like to have you Securitization Group. No, I didn't fully remember what securitization was, but they had sent a form, a copy that you filled out and mailed back in. And one of the boxes I apparently ticked was securitization. And I guess I was the only one who checked it in the starting class that year.”
2022-12-01 · Capital Allocators · Thomas Majewski – Empty Rooms: Masterclass on CLOs at Eagle Point Credit Management (Capital Allocators, EP. 284) · IDENTIFIED FROM THE TRANSCRIPT · source
“It was not a straight line for sure. Things started accidentally. I studied accounting in state college and upstate New York at Binghamton and turned up at one of the then big six accounting firms, no longer with us, unfortunately. And after some training, they went around the room the first day and said, you're going to Solomon, you're going to XYZ, you're going to this client, this client They skipped over me”
2022-12-01 · Capital Allocators · Thomas Majewski – Empty Rooms: Masterclass on CLOs at Eagle Point Credit Management (Capital Allocators, EP. 284) · IDENTIFIED FROM THE TRANSCRIPT · source
“Conversation offers a masterclass on CLOs across Tom's career history, the mechanics of CLOs, and nuances of the business. We discuss his early years in the business, characteristics and performance history of the asset, and the launch of Eagle Point in the aftermath of the financial crisis. We discuss Eagle Point's strategy, investment process, team, desired traits of successful CLO collateral managers, opportunities in CLO debt, and Tom's vision for the business going forward. Please enjoy my conversation with Tom Majewski. Great to see”
2022-12-01 · Capital Allocators · Thomas Majewski – Empty Rooms: Masterclass on CLOs at Eagle Point Credit Management (Capital Allocators, EP. 284) · IDENTIFIED FROM THE TRANSCRIPT · source
“Today's show is both a sponsor insight and another empty room, an exciting investment opportunity where few are paying attention. This time, it's CLO Equity, an asset that is consistently generated strong returns with modest risk for decades. And that fact may come as a surprise to many. My guest is Thomas Majewski, the managing partner and founder of Eagle Point Credit Management, a $14 billion specialist credit manager that's believed to be one of the largest investors in CLO equity in the world. Thomas spent his entire career in the structured finance and credit markets, including the early days when he likely was the first person to refinance a CLO.”
2022-12-01 · Capital Allocators · Thomas Majewski – Empty Rooms: Masterclass on CLOs at Eagle Point Credit Management (Capital Allocators, EP. 284) · IDENTIFIED FROM THE TRANSCRIPT · source