Financial Markets

Hudson Advisors offers a wide range of risk management, capital markets advisory, and credit/asset finance solutions to financial sponsors, privately held and publicly traded companies, and sophisticated investors, including pension funds and private equity funds.

As of December 31, 2020, more than $1.5 trillion of cumulative gross notional in derivative transactions executed across FX, interest rate, and commodity markets

As of February 28, 2021, more than $134.8 billion UPB of non-performing U.S. residential assets (including residential whole loans, RMBS bonds, and CDO bonds) underwritten and asset-managed

Since 2015, advised on and/or organized more than $25 billion of cumulative corporate debt and equity transactions, including asset-based credit facilities, term loans, 2nd lien loans, high-yield bonds, amendments, restructurings, and common equity issuance.

An experienced problem-solver, Hudson consults with clients and provides advice regarding capital structures, risk management, hedging programs, regulatory compliance, and debt and equity structuring and access. Further, Hudson’s comprehensive credit and asset finance platform provides investment management, underwriting, trading, and securitization of U.S. consumer assets, including residential mortgages and consumer installment loans.

Financial risk management

We know that our clients are the experts in finding their investments. Hudson works alongside clients to help ensure that any investment is protected from unintended market risk. Hudson’s financial risk management service offering is a front-to-back suite of services that includes market risk management, trade execution, derivative valuation and reporting, hedge accounting, regulatory compliance, and derivative documentation negotiation.

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Our team has more than 67 cumulative years of industry experience managing hedging transactions on both the buy-side and sell-side and has executed more than $1.5 trillion gross notional in derivative transactions while at Hudson across FX, interest rate, and commodity markets.

We have deep expertise in developing and implementing: fund-level FX hedging programs, and interest rate, FX, and commodity hedging strategies within operating companies and special purpose vehicles; and sign-to-close, deal-contingent hedging.

In addition to market risk management advisory and hedge execution, we provide our clients with valuation and reporting infrastructure that would otherwise be costly and difficult to build in-house, including models to determine exposures before and after trade implementation; customized reporting through Microsoft Power BI; and ongoing monitoring and reporting to a client’s specific needs.

Corporate advisory and capital markets access

Our deep experience in leveraged finance and capital raising makes us a valuable advisor to corporate and private equity clients across a wide range of industries and situations.

With access to a broad network of investors across multiple classes of debt and equity instruments, we provide our clients with real-time market knowledge and recommendations regarding key investment criteria such as return, appetite, and structure requirements. We tailor the structure and process of each capital raise to meet a client’s unique objectives, focusing on optimal structure, pricing, and terms.

Our experience is grounded in our historic role as advisor with respect to portfolio companies owned by certain Lone Star Funds. Over the years, we have advised on dozens of significant debt and equity transactions,2 including:

In 2018, a $400 million asset-based lending facility and a $450 million term loan for a specialty distributor of building products.

In 2017, the issuance of $807 million of notes for a consumer lending company.

In 2016, the $332 million IPO of a pipe and precast product manufacturer.

2 All representative investments and transactions are for illustrative purposes only. Investments and transactions were not selected on performance-based criteria, but rather to display the diversity of our experience.

Credit and asset finance

Hudson underwrites, trades, finances, and manages asset-backed and structured credit investments for our clients. Our team collectively covers all types of securitized products, such as residential mortgage-backed securities and collateralized debt obligations, and our clients’ investments, including residential mortgage, consumer, and corporate loans. We operate with speed, efficiency, and the benefits of deep experience.

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On behalf of the Lone Star Funds, Hudson has underwritten and asset managed more than $134.8 billion of unpaid principal balance of U.S. residential assets (including residential whole loans, RMBS bonds, and CDO bonds) that have been acquired by affiliates of certain of the Lone Star Funds since 2008. In connection with these assets, Hudson has overseen the successful execution of active asset management strategies to maximize investment value, including collapsing CDO structures and intensive servicing of non-performing residential loans.

To support the efficient financing of mortgage and consumer debt assets, Hudson, together with Lone Star, has a history of developing and launching inaugural asset-backed securitization solutions. Following the Great Financial Crisis (GFC), in 2009, Hudson, together with Lone Star, developed the industry’s first post GFC RMBS financing of non-performing, re-performing, and second-lien mortgages. In 2014, Hudson, together with Lone Star, launched a shelf to provide term financing to certain RMBS and ABS bond portfolios. Further, in 2015, Hudson, together with Lone Star, developed the first post-GFC securitization of non-agency and non-QM mortgage collateral (outside of the “prime jumbo” loan space). As of 1Q 2021, these three shelves comprised more than 174 completed securitizations and more than $60 billion of ABS debt sold.

Outside of typical securitization markets, Hudson also has unique experience structuring customized financing vehicles for illiquid investment assets, including middle market levered corporate loans and short-term consumer loans. These customized financing solutions have provided our clients with a structural market advantage.

Our Services

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Seasoned professionals who know how to direct highly capable management teams to deliver successful outcomes for investors.

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Real Estate

Hudson Advisors offers a wide range of real estate underwriting and asset management services to sophisticated investors.

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Financial Markets

Hudson Advisors offers a wide range of risk management, capital markets advisory, and credit/asset finance solutions to financial sponsors, companies, and sophisticated investors.

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