Assured Guaranty Ltd. AGO stock is up 4% in premarket trades after the credit product provider to the financial sector said it’s creating the world’s fifth largest asset management business that handles collateralized loan obligations in a transaction with Sound Point Capital Management. Bermuda-based Assured Guaranty said it will own 30% of the combined entity in exchange for 100% of its equity in Assured Investment Management LLC (AssuredIM) in a deal that will immediately add to its earnings per share and return on equity. Under the deal, Sound Point will be Assured Guaranty’s sole alternative credit manager to invest $1 billion over time in alternative credit strategies, including nearly $400 million currently managed by AssuredIM as of Dec. 31, the company said.
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