US loan default rates will peak near record levels, says Deutsche Bank
A new research paper from Deutsche Bank has forecast leveraged loan default rates rising to near all-time highs by the fourth quarter of 2024.

Do amend and extends now before big chunk of CLOs exit reinvestment, says BofA
Research analysts at Bank of America are recommending CLO managers complete amend and extend activity before a wave of transactions exit their reinvestment periods later in the year

34% of CLOs rated by Fitch out of reinvestment
34% of the CLOs rated by Fitch Ratings have left their reinvestment periods including six deals that exited in May, the rating agency said in a note to clients on Thursday

Student loans emerge as headwind for loan market, says BofA
American graduates are poised to resume student loan repayments in August, and new research from Bank of America suggests the change could be a headwind for the loan market due to weaker consumer demand.

Infrastructure investor brings in senior team to launch new sustainable credit platform
Energy Capital Partners (ECP) has announced that a new team will merge into ECP’s dedicated credit investing business and launch a sustainable credit platform named ECP ForeStar

Fitch notches up US lev loan and HY 2023 default rate forecasts
Fitch Ratings has raised its US corporate institutional high yield bond default 2023 forecasts from 3%-3.5% to 4.5%-5%, and its leveraged loan default forecast from 2.5%-3% to 4%-4.5%

US lev fin co-head at Deutsche Bank set to join HSBC
HSBC has brought on former Deutsche Bank official as global head of leveraged and acquisition finance, following Ray Doody's retirement in March

Loan recoveries slump as investors bank on rebound
The average recovery rate for defaults in 2023 has declined considerably due to a combination of factors such as: cov-lite loans, priming activity in previous years, loan-only borrowers defaulting, and the sectors in which the defaults have been concentrated

Credit hedge fund returns (May 2023)
Credit hedge fund returns

Credit funds at a glance (May 2023)
A round-up of people moves and fund raising

March madness sees most funds give up gains made in Q1
After a positive start to the year, credit funds ended the quarter with a step backwards; just under 30% of those listed reached positive returns for the month.

Octaura launches loan market's 'first comprehensive trading platform'
Octaura, the fintech startup offering electronic trading for loans and CLOs, today announced the launch of its comprehensive syndicated loan trading platform that it says is the first on offer for the market

Pimco eyes CLOs as part of new flexible credit interval fund
Pimco is preparing to launch a new closed-ended, non-listed interval fund, named Pimco Flexible Corporate Income Fund, which will invest at least 80% of assets in corporate debt across public and private credit markets

CLO market finds feet again after ‘miniature credit crunch’ blows up spreads in March
Markets were rocked by what some observers have called a “miniature credit crunch” in March, with disruption beginning with the collapse of Silicon Valley Bank and ending with UBS’s takeover of Credit Suisse.

Defaults rise yet fears of low recoveries hurt even more
Defaults and Chapter 11 filings are picking up this year amid tougher economic conditions for borrowers

CLO funds make best of a bad situation
It can’t get any worse can it? Well, it did in 2022, when credit spreads kept moving wider. Still, CLO funds were able to withstand the pressure, and they outperformed other credit strategies

Fund performance: European CLO funds lead the way
February was a positive month for many funds, as only one quarter failed to reach the black. This builds off a stellar start to the year: 96% of funds reached a positive return in January

Credit hedge fund returns (April 2023)
Credit hedge fund returns

Credit funds at a glance (April 2023)
A round up of people moves and fundraising

Fundraising specialist joins Moelis in New York
Moelis has announced the hire of an experienced fund placement and fundraising specialist as managing director and senior member of its private funds advisory unit.

FCA greenlights synthetic Libor
The UK’s Financial Conduct Authority has given the go-ahead for ‘synthetic Libor’ as it creates a bridge for Libor contracts that do not have any hard-wired language referencing Sofr. 

Natixis hires loan trading head in New York
Natixis has hired Chad Hersch as managing director responsible for its loan trading platform

Antares adds to new syndicated loans unit with portfolio manager hire from Apex
Antares Capital has hired Andrew Stern as managing director and portfolio manager responsible for liquid credit

Credit Suisse/UBS deal to create $5 trillion asset manager
The emphasis is set be on wealth and asset management, according to a statement released by UBS in conjunction with its move to acquire Credit Suisse

Pimco promotes global lev fin and CLO head to managing director
Pimco's leveraged finance head is one of five senior officials promoted to managing director