Sculptor Capital Management

One of the highlights and traditions at Sculptor is our kickoff to summer with an annual NY summer party. This year employees and their families had fun playing a few rounds of pickleball in Central Park while enjoying a beautiful New York summer evening. Big shout out to our amazing Human Capital team who organizes a fantastic event every year. Kate Pillemer, Paige Colvin, Jane Dillulio, Janine Graham, SHRM-CP, Jerome Truzzolino

Always a fun tradition when we have the Sculptor interns down at the New York Stock Exchange. Thank you to the whole team at the NYSE and Joseph Tama for showing us the trading floor and giving us the opportunity to be a part of the opening bell. 

There are many ways that we believe the “higher for longer” rate regime has played to our strengths. In convertible arbitrage, the flood of issuance YTD, combined with the retrenchment of long only demand, has given rise to a rich opportunity set globally. We have been able to deploy meaningful capital both in the primary market to help fund the corporate need, as well as the secondary market where we believe relative cheapness exists. https://bit.ly/3VLtrHU

When asked by clients what worries us, one risk we discuss is that the perception of inflation having been tackled could itself be inflationary. As consumers, asset owners, and corporates become more confident in the economic outlook, particularly with respect to inflation, they tend to behave in a manner that could reignite inflation. Vibrant capital markets and rising asset prices only fuel the fire. Rents have always been a natural culprit here, and recent data suggests we cannot rule out such an outcome. Link to Wall Street Journal Article https://bit.ly/4bdGec5

We were honored to sponsor and attend the 28th Annual Way to WIN Gala in New York City. Founded in 1983 in midtown Manhattan, Women In Need (WIN) has grown to become the largest provider of family shelter and supportive housing in New York City as they work towards breaking the cycle of intergenerational homelessness. 80% of the NYC homeless population are families, including more than 11,000 children under the age of five, making this a cause close to our heart. We are proud to support this incredible organization and look forward to more opportunities to volunteer throughout the year.  

Spring weather did not deter the Sculptor team from this year's Tillman Honor Run in New York City! Over the course of 4.2 miles, our team members helped raise funds for the Pat Tillman Foundation's Tillman Scholars Program, which provides scholarships to members of our nation’s active-duty service members, veterans and military spouses. 

Many are asking the age-old question when will the default cycle begin but what they are missing is that the era of opportunistic lending has replaced it in robust fashion. After nearly two decades of easy money, vast technological innovations, and structural shifts in credit markets, we are now witnessing a new chapter in opportunistic credit investing. In our latest edition of What We See, our credit investment team explores how we arrived here and what this means for credit markets. https://bit.ly/3xestf8

How are higher rates and conducive equity markets impacting convertible arbitrage opportunities? How do we evaluate where and when to invest across the globe in CBs? Stephane Mantelin, Global Head of Convertible Derivative Arbitrage and Theo Talpasanu discuss these questions and more in the latest In Our View series on the current favorable market dynamics in Convertible Arbitrage. https://bit.ly/4edieZm

We are excited to participate again at this year’s Creditflux CLO symposium.

We are excited to have closed Sculptor European CLO XI. The strong investor demand we received from a diverse group of leading global institutions for both the CLO’s equity and rated notes is a testament to our long tenured success within the CLO market. With the close of Sculptor European CLO XI, we now manage 35 CLOs and CBOs across both the US and Europe as part of our $15 billion Institutional Credit Strategies business. https://bit.ly/4biSOXI