Bank of New York Mellon has agreed to acquire Cutwater Asset Management from MBIA, BNY Mellon spokesman Mike Dunn said.
Financial terms of the deal were not disclosed. The transaction is expected to close by early in the first quarter of 2015.
Cutwater, a fixed-income manager with about $23 billion under management, will operate as part of BNY Mellon Investment Management and report to Insight Investment, one of BNY Mellon’s investment management boutiques.
The firm will operate under a new name, but it has not yet been decided.
Clifford Corso will remain CEO and chief investment officer of Cutwater. He will report to Abdallah Nauphal, CEO and CIO, investments, at Insight Investment.
“Cutwater brings an impressive performance history, strong intellectual capital and an investment culture consistent with BNY Mellon’s,” said Curtis Arledge, CEO of BNY Mellon Investment Management, in a news release. “Given the unprecedented interest in the fixed-income market at this time, we are excited by the opportunity to expand our investment offerings.”
Mr. Nauphal added in the same news release: “Cutwater’s U.S. domestic fixed income and solutions track record and team will complement Insight’s strategy in the U.S.”
