CLO market mood sours amid bitter economic outlook

US manager launches CLO and loan funds with $150 million seed capital
A Dallas-headquartered manager has secured $150 million in anchor commitments for a new US CLO fund and leveraged loan fund

Credit Rendezvous: Investors try to avoid suplex city as recession and inflation reform tag-team
Credit investors getting ready to lock up against that familiar 1970s pairing of inflation and recession. But the hard-hitting tag team has picked up some new moves, causing floating rate outperformance to give way to underperformance; synthetic credit to outperform cash; and CLO terms curves to reshape into barely recognisable positions

"The CLO that started the wave of prints and sprints paid near 20bp more than the market average"
It is possible to hit a home run with a print and sprint CLO, but execution is difficult  

FinDox steps in on climate disclosure reporting for CLOs
FinDox has become involved in reporting on carbon data for ­climate-related financial disclosure regulations, having been mandated by leading CLO managers to source relevant ESG key performance indicators

Beneath the triple C: ebbs and flows leave triple C levels at a temporary stasis
Following a rising tide of downgrades in May the loan market stabilised somewhat in June, with seven issuers held by CLOs downgraded to triple C and a counter-swell of five names upgraded to single B.

CLO managers try loan restructuring provision
European CLO managers have taken advantage of new loss mitigation language in deals for the first time, after Schur Flexibles announced a restructuring last month

Fund performance: Rocky May piles on the misery for credit hedge funds
Negative fund performance soared in May

Credit hedge funds (July 2022)
Credit hedge fund returns

Ucits at a glance: LBBW shines as Ucits take a turn for the worse
Ucits fund returns

Credit funds at a glance (June 2022)
A round up of fundraising and people moves in credit  

Seeds sewn for carbon credit market to flower into CLOs
Long-time structured credit specialist Jan Phillip Wassenaar has joined start-up NatureCredits as a senior advisor to support the evolving carbon credit industry

European CLO managers wait for stability as loans slide
European loan prices have dipped into the high 80s, as Creditflux goes to press, which should create an attractive entry point for loan buyers. But, in reality, the bid for these assets has not been strong, particularly from CLOs amid fears loans could slump further still

Past returns: Ramp-up failings
Five years ago in Creditflux, we reported that CLO investors were fed up with misleading model portfolios.

They said it: "We are proud to be moving our industry in a direction that will bring greater liquidity..."
Brian Carosielli, co-head of global credit trading at Bank of America, on a new CLO trading platform 

CLOs aim to pick up pieces as fear drives dip in loans
Leveraged loan investors grew skittish in June, with prices slipping as the likelihood of a US recession increased, according to market sources.

Tech platform aims to cut time spent reading CLO docs
Officials at Claira, the new platform that provides natural language understanding technology backed by Citi, say the CLO market is a core industry for them as they seek to help market participants quickly assess loan and CLO documents

Loan traders eagerly await electronic trading solution
The announcement of Octaura’s electronic loan and CLO trading platform last month has been met with positivity by market participants, who laud the unified approach taken by large investment banks in supporting the initiative

Arcmont says liquid loan opportunities depend on timing as it advocates direct lending instead
Arcmont Asset Management has made the case for direct lending over syndicated loans in a white paper, despite having being an admirer of CLO management platforms 

LP round up: 28 credit managers win $6.6 billion as San Diego carves private credit allocation
Pensions allocated over $6.6 billion to credit managers in June including Angelo Gordon, Antares, Apollo, Ares, Beach Point, BioPharma, Brookfield, CarVal, Cerberus...

Manager selection stakes are heightening as CLO pain points intensify: Barclays
CLOs’ slump in market value and piling of distressed assets have made differentiation between managers much more acute on key metrics, regionally and by vintage, according to Barclays credit strategists

Octaura's real-time trading solution paves way for loans and CLOs to drop illiquid tag
The unprecedented cooperation between CLO trading desks that culminated last week in the launch of Octaura could change the way credit investors judge the relative value merits of loans and CLOs versus liquid alternatives such as high yield bonds

CLO investors show more signs of optimism than other ABS: Barclays
CLO investors attending the Global ABS conference in Barcelona were more upbeat than those that work in residential mortgage-backed securities and other ABS, say Barclays securitised credit strategists. But the overall mood was sombre

Revlon spares no blushes for CLO managers in filing for Chapter 11
Troubled lender Revlon Consumer Products filed for chapter 11 bankruptcy late Wednesday night. The default is likely to have a weighty impact on the CLO market 

US loan market drops to record low for 2022
The loan market reached a new record low for the year on Thursday with the S&P/LSTA Leveraged Loan Index trading at an average bid of just 93.66 cents on the dollar