BNY Mellon has reached an agreement to acquire Cutwater Asset Management, a US-based fixed-income and solutions specialist with approximately $23bn in assets under management. The firm is currently a wholly-owned subsidiary of MBIA.

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 strategies.

“Cutwater brings an impressive performance history, strong intellectual capital and an investment culture consistent with BNY Mellon’s. 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,” said Curtis Arledge, CEO, BNY Mellon Investment Management. 

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 premier investment management boutiques and one of Europe’s leading investment managers. The addition of Cutwater’s capabilities will enhance BNY Mellon’s and Insight’s US platform and abilities to offer specialized fixed income solutions.

“Working closely with Cutwater will augment our current fixed income capabilities, deepening our fixed income research and portfolio management expertise in the world’s biggest and most diverse credit market,” said Abdallah Nauphal, CEO and CIO, Investments, Insight Investment.

“Cutwater is delighted to be joining a true global leader in the asset management industry. This union is a logical next step for Cutwater. We share a similar investment philosophy and approach designed to offer products and relevant client solutions,” added Clifford D Corso, CEO and CIO, Cutwater.