MBIA restructured its fixed-income asset management business as a separate operating company, renaming it Cutwater Asset Management, according to an MBIA news release.
Greater financial and operational independence will position the former MBIA Asset Management “to accelerate the solid growth” the fixed-income business has achieved over the past 20 years, Bill Fallon, MBIA’s president and COO, said in the release.
Clifford D. Corso, who had served as president and chief investment officer of MBIA Asset Management, was named president and CIO of Cutwater.
In an interview, Mr. Corso said Cutwater remains a wholly-owned subsidiary of MBIA.
The fixed-income business currently manages about $43 billion in client assets, said Mr. Corso. The total includes $16.7 billion in proprietary MBIA-related portfolios, with third-party business — including pension fund, Taft-Hartley plan, endowment, financial institution and insurance company clients — accounting for the remainder.