BNY Mellon to buy asset management firm

BNY Mellon has reached an agreement to acquire Cutwater Asset Management, a fixed income and solutions specialist with about US$23 billion in assets under management from MBIA Inc.

Financial terms of the deal were not disclosed.

Upon completion of the deal, Cutwater will operate as part of BNY Mellon Investment Management and will work closely with, and be administered by, Insight Investment. Insight is one of BNY Mellon’s investment management boutiques.

Cutwater’s products and investment solutions include a wide range of fixed income strategies such as core, long duration, high yield, loans and absolute return.

“Cutwater brings an impressive performance history, a strong intellectual capital and an investment culture consistent with BNY Mellon’s,” says BNY Mellon Investment Management CEO Curtis Arledge. “Given the unprecedented interest in the fixed income market at this time, we are excited by the opportunity to expand our investment offerings for clients as a result of this combination of fixed income capabilities.”

The transaction is subject to standard regulatory approvals and certain other conditions and is expected to close by the beginning of the first quarter of 2015.

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