Sound Point Meridian Capital initiated with a Buy at B. Riley

B. Riley initiated coverage of Sound Point Meridian Capital with a Buy rating and $22.50 price target Sound Point is part of a new class of closed-end funds capitalizing on the cash flow arbitrage that exists within collateralized loan obligation equity, which generates mid-teens un-levered returns, the analyst tells investors in a research note. The firm believes the company’s seed portfolio should enable it to scale efficiently, growing earnings as it adds debt to the capital structure.