Theta, a Limited Purpose Operating Company, was established to conduct the business of credit management, by investing in both investment grade cash securities and selling protection via credit derivatives in order to generate a stable income stream for its capital investors in all market environments.
Some of the new credit structures that have been recently introduced in the marketplace can be very difficult to integrate into investors’ existing investment strategies and traditional cash systems, especially aggregating exposures in cash and synthetic form and combining single names with tranches. Consequently, effective risk management across a combined cash and credit derivative portfolio is very difficult to achieve and expensive for most investors. Gordian Knot spent 4 years working with investors, rating agencies and our joint venture partner, JP Morgan, to develop both systems and rating agency models for Theta prior to launch in December 2004.
Theta provides a unique alternative investment approach which is uncorrelated to either traditional fixed income investing, hedge funds or equities. We consider Theta to be a direct extension of the investment approach that we, at Gordian Knot, have developed over the last 15 years: to use the latest investment technology for investors and to present it in a format that aids investors’ risk management, facilitates accounting, ensures control and capital preservation. We believe that this approach represents the future of credit based investing.
Theta was launched and rated on 15th December 2004. As of January 2012 assets, both funded and unfunded, totalled approximately US$6.4 billion.
If you would like more information about Theta Corporation please contact a member of our investor services team. Contact details can be found here.