Loan dip brings longest CLO primary pause since January
CLO primary business has been put on pause as the market grapples with a selloff in loans, meaning no new transactions have been issued so far this week 

Envision exchange leaves some lenders sick, but CSAM finds prevention is better than cure
Envision Healthcare’s distressed debt exchange has rocked the CLO market, with over $1.68 billion of the firm’s loans held by US CLOs. But some of the largest managers have avoided the name completely 

Defaults should keep low despite looming recession, says TwentyFour
Corporate default rates should remain low even as the chance of a recession looms larger, according to a new report from TwentyFour Asset Management

Sound Point promotes duo to lead US CLOs as veteran PM steps down
Sound Point has allocated responsibility for the US loan and CLO platforms to the pair as lead portfolio managers

Think of the arb, say US CLO panelists after big loan drop
Far from being a cause for alarm, falling loan prices have brought a welcome opportunity in new CLO issuance for managers and investors, according to speakers at the Creditflux Symposium in London today

Macro woes have dented CLO and loan outlook: Barclays
Rising interest rates and elevated macro volatility have negatively impacted the performance outlook for both loans and CLOs, according to Barclays credit strategists

Loan buyers warned about rush of Sofr opt-in amendments
CLO managers must be mindful of loan amendments that facilitate a benchmark switch from Libor to Sofr, as they could find themselves buried in paperwork and locked into tight deadlines

European CLO managers aim for bigger bond bucket fix
European CLO managers are eyeing larger fixed rate bond allocations amid dislocation and lower loan supply. This has, in turn, led to an increase in fixed rate tranches

Investable universe for Euro CLOs shrinks amid inflation
The number of loans suitable for European CLOs is getting smaller at a time when new CLO issuers are looking to enter the market

Tech firm eyes data-driven approach to CLO management
As New York-based tech firm Exos prepares to launch what it calls “the first truly tech-enabled CLO”, the specialist leading its efforts says technology could soon play a central role in CLO portfolio optimisation

CLO market and congress plead with SEC to extend rule comment period to 90 days
SEC rule proposals are no page-turners: members of the US congress are looking to extend comment periods from 30 days to 90 days. Recent SEC rule proposals require commentors to read and analyse roughly 3,570 pages and respond to 2,260 individually identified questions   

Managers debate ethics of investments in arms makers

Attack-minded CLO managers capitalise on bearish outlook
Some of the most aggressive CLO managers have benefited from loan market volatility in March after having tweaked their portfolios in the months beforehand

US loans recover but CLOs lag and issuance stutters
The US leveraged loan market spent the latter half of March recovering losses from Russia’s invasion of Ukraine, with prices now above where they were when the war started

European CLO pipeline thins as investors wait for stability
The European leveraged loan and CLO market has yet to regain momentum following the start of the Ukraine-Russia conflict, with investors pointing to a thin immediate CLO pipeline

CLOs look attractive after corporate rally - but not all tranches: Barclays
Rallying corporate cash credit spreads over the past two weeks have widened the basis with CLOs and made these products look attractive again, according to Barclays strategists

Hidden loan tail risks and mounting single B exposure could pose problem for CLOs: Barclays
A solid rally for leveraged loans this week - against returning weakness in bonds - has put focus back on the market, which seemingly has little tail risk priced in. But short term support factors and a dwindling triple C bucket mask the quality skew, warn Barclays strategists in a note today - which could spell downgrades for single-B minus rated loans

Former US CLO portfolio manager lands at BTIG
A former Pretium and Crescent CLO portfolio manager has landed at BTIG as managing director within the firm’s fixed income credit division

Lakemore names CLO veteran Tiffen as independent board member
US control CLO equity investor Lakemore Partners has appointed a CLO and loans veteran to its board of directors

Market participants split over biggest risk to CLOs: Creditflux US CLO Summit
There are potential threats to the CLO market from all angles, but during a lively opening panel at Creditflux’s US CLO Summit on Tuesday – the first CLO conference to be held in New York since the pandemic – speakers responded to a poll showing 67% of audience members felt inflation/rising interest rates was the biggest hazard

European CLOs well-placed to counter volatility: Fitch
High inflation could hamper borrowers, but European CLOs are in decent shape with most loan issuers having refinanced last year, according to a report by Fitch Ratings. Other parts of structured credit are not as well insulated against risks. 

Biden signs Libor transition measures into law
The Libor legislations, which recieved bipartisan support, are aimed at giving clarity to tough-to-amend Libor contracts that lack adequate fallback language, and supporting a smooth transition away from Libor

Senate introduces bipartisan bill for “tough" legacy Libor contract transitions
Four senators introduced a bill on Wednesday to provide a replacement framework for “tough legacy” financial contracts that reference Libor but cannot be easily changed

The Last Tranche with CVC's Bergstresser: CLO market will continue to function amid Ukraine crisis
In this episode of the Last Tranche, CVC Credit Partners partner and global head of performing credit Gretchen Bergstresser discusses the impact of Russia's invasion of Ukraine on the global loan and CLO markets

CLO equity could get hurt by mismatch in credit spread adjustments: Barclays
The possibility that borrowers and sponsors start to use their clout to scrap credit spread adjustments from leveraged loans poses a risk for new CLO equity, while legacy deals also face transition challenges