Points up front: Blame it on capitalism
You know it’s a tough month for returns when a hedge fund manager quotes Lenin and laments that capitalism and globalisation have failed to distribute wealth efficiently

Investors need to ask: can my asset manager survive the crisis?

You need a balanced portfolio that’s ready for calculated risk taking — so consider a barbell approach
Investors can’t afford to be too conservative as they prepare for the end of the cycle

Don’t get too comfortable. The truth is there are hundreds of things that could be catalysts for a sell-off
Just because there’s no obvious sign of a sell-off, doesn’t mean it’s not going to happen. Often, market moves defy logic

‘Buying the dip’ is going to be a poor investment strategy when the next downturn comes
The next credit downturn will be shallower but more prolonged than the last, so what works will be different, too

Points up front: There are lies, damn lies and awards pitches
We’re hearing empty boasts, trash talking of their rivals and no shortage of promises that will absolutely be delivered.

Points up front: Loan deal with 23 takes Griezmann to Barcelona
Soccer financing firm 23 Capital has been adding credit experts to its team and now has a CLO specialist captaining its capital markets effort, with former Guggenheim Securities co-head of ABS/CLO syndication Sreesha Vaman joining last month. The squad already features credit portfolio managers Sam Filer (ex-BMS Finance), David O’Connor (Mizuho) and Ardeshir Sorabjee (Deutsche Bank).

Points up front: Benefits of being unethical
Investing ethically is increasingly becoming part of a credit manager’s mandate, with environmental, social and governance (ESG) strategies all the rage.

Tourists have turned high yield into a sketchier neighbourhood… IG credit could be the answer
Using CDS to exploit roll-down in IG credit can generate good returns even in a low-rate environment

PE hold periods have shrunk but fast acquisitions can lead to botched integrations
Buyout multiples are likely to stay high – but moving fast and specialising can help firms make money

Being fully invested can have a greater impact on IRRs than avoiding 2% defaults annually
The IRR differential can be as much as 3.3% for a fully invested CLO versus one that maintains a 5% cash balance

Just because there have always been loan fees doesn’t mean they are the right way of doing things
Scrapping loan transfer costs of up to €3,500 per transaction is a bridge Europe should cross for the sake of liquidity

You can’t time everything 100% correctly, but being too early can be a mistake
ArrowMark's Kaelyn Abrell takes our credit quiz

They said it: "I enjoy problem-solving and puzzles"
CQS founder Sir Michael Hintze on his role as senior investment officer at the London-based credit fund manager

I liked it when banks could hold risk and actually had inventory to shift
Louis Gargour, CIO of LNG Capital, takes our credit quiz

Selling at the time of the default or downgrade can often be the worst value decision for the CLO
CLOs don’t have to be forced sellers during distress cycles: skilled CLO managers and well-structured indentures can give optimal recoveries, says our columnist Thomas Majewski

They said it: ebit-don't or ebitdaaa
Two direct lenders take turns complaining about ebitda adjustments

Points up front: Creditflux makes significant SRT call
They were once referred to as regulatory capital relief trades (or reg-cap trades), but now no one can agree on what to call them

The perception of liquidity is often not the same as the reality
Investec Asset Management's Jeff Boswell takes our credit quiz and discusses liquidity in Europe, the former "darling of the European debt market" Vivarte and the Matrix

They said it: "If the loan has a covenant, there’s probably something wrong with it"
Fully covenanted loans are a rarity, which would bring one to think that these are prized possesions. A US loan manager disagrees

Points up front: World Cup simulation shows models don’t work
England as fourth favourites? Pull the other one

We are not structured finance investors – we are corporate credit specialists
Fair Oaks' Miguel Ramos-Fuentenebro takes our credit quiz

Future returns: we've (not) got a case of the blues
Regular readers may notice a slight change to this, the 201st issue of Creditflux...

They said it: regulators are using The Big Short as their frame of reference
The LMA’s Nicholas Voisey describes why it’s difficult to campaign for the European loan market