It's all relative: IG index drifts wide of 50bp as European CLO triple Bs outperform
US investment grade credit has been an underperformer in the last few weeks with CDX IG trading north of 50 basis points again. But European CLO triple Bs are looking strong while there is a stronger bid for two- to three-year paper in the US

Credit Rendezvous: And breathe...
The unanimous verdict is that credit spreads will be moving wider – they have to. But the difficulty credit fund managers face is predicting when the next sell-off comes and how sharp it will be. In the Q3 instalment of Creditflux’s Credit Rendezvous, the over-riding message from portfolio managers is that there’s little point in taking on too much risk. The report features the views of prominent credit figures including Paul Horvath (Orchard), Himani Trivedi (Nuveen), Ronnie Jaber (Onex), Graham Rainbow (Alcentra) and Michelle Russell-Dowe (Schroders). The report looks at 14 segments of the market including CLOs, direct lending, leveraged loans, distressed debt and credit derivatives.  

The View from ION Analytics: paradise blues
The reopening of economies from Covid-19 lockdowns has created distortions in financial markets that are harder to navigate than those of the original sell-off in early 2020. Even big-name economists and central bankers are confused, changing their views in recent weeks. 

Jefferies and SMBC form $2.25 billion partnership
Jefferies and SMBC Group have announced an alliance which will see SMBC provide a $1.9 billion credit facility to Jefferies Finance, the leveraged finance affiliate of Jefferies, and $350 million to Jefferies Group.

Alcentra hires London-based executive director in liquid loans and high yield team
Alcentra has hired a senior analyst in the firm's liquid loans and high yield team 

Green QE is future, says BofA
Last week's European Central Bank strategy review confirmed that climate change policies will dictate the shape of future asset purchases, say Bank of America credit strategists

Tikehau launches high yield impact credit fund
Tikehau says it has committed €30 million of initial capital to the fund, through which it aims to transition companies towards a net zero carbon economy

Credit spreads gap wider as growth fears rock market
Credit indices have gapped wider and stocks slumped, with government bonds making gains, amid rising concern about future economic growth prospects and the impact of central bank policy

Fund performance: Déjà vu as April leaders dominate
CLO funds stayed in the top flight for another month as they took over the top 10 credit hedge fund return table in May, when 87% of all funds listed made positive returns

Credit hedge funds (July 2021)
Credit hedge fund returns

Credit index tranche trading on the rise amid low dispersion
At its halfway point, 2021 is shaping up as another big year for credit index tranche trading, with new investors having entered the market and dealers projecting full-year volume could vie with 2020’s record of recent times.

CLO demand drives loan outperformance versus bonds
Leveraged loans could be set for their strongest run of outperformance over high yield bonds since 2017, say investors and strategists ­— if the CLO engine and an influx of money to funds continues to drive flows

Credit grind pushes back volatility bets
With recent weeks having all-but crushed volatility from the market, uncertainty about the timing of future risk triggers is leading credit options traders to spurn traditional horizons to focus on longer-dated expiries

Credit slumbers in departure lounge as airline equities take off
Credit and equity markets have been in a balancing act on Tuesday between the positive and negative implications of surging oil prices and Germany opting to relax travel restrictions

French food producer gets cold shoulder following bond issue
Picard, the French frozen foods producer, is one of the biggest movers in the European high yield market on Monday, after investors showed little warmth for its new bond issue in the secondary market

All eyes on NFP as credit seeks exit from 'no man's land'
Credit markets look to be ending wider on the week but, with focus mainly on today's US non-farm payroll numbers, the lack of movement in early trading could give way to a stronger directional play ahead of the long US weekend

KKR opens Stockholm office
KKR has expanded its presence in the Nordics with an office in Stockholm

It's all relative: CDX HY touches record tights but junior US CLO tranches leak wider
Credit spreads are marching tighter, but someone forgot to tell the CLO market. European and US CDS spreads have moved in step with each other for the most part with investment grade and high yield tightening 4-6% in the last week, whereas CLOs have been losing ground

Real estate firm blows wider but BoE allays broader market concerns
Adler Real Estate traded sharply against trend as high yield credit spreads hit new post-pandemic tightest levels on Thursday

Chicken supplier takes courage from earnings improvement
Boparan, one of the riskiest companies in the European high yield credit market, is among the biggest movers in bonds and CDS on Wednesday, as the market resumes its rally to the tightest prints of the year

Triple Bs in the firing line as Fed turns hawkish, says BofA
Triple B and long duration credit are likely to be casualties of tightening central bank policy, Bank of America strategists have warned. But high yield and cyclical investment grade sectors could fare better

High yield chemical co gaps tighter on bond buy-back
Chemical producer K+S Group is a big improver in credit on Thursday even as the rest of the market moves wider, after it announced a tender offer for bonds

Axa IM extends palm oil policy to cover ecosystem protection and deforestation
Axa Investment Managers says it is expanding its 2014 policy of excluding investments in companies which do not have sustainable palm oil production certificates by factoring in deforestation and ecosystem protection

Capital Group hires senior portfolio manager from AB in London
Capital Group has drafted in an investment director in London as it targets European investors 

Shipping firm adds buoyancy amid few signs of choppiness in credit
CMA CGM, the French container shipping company, is a big mover today amid very calm waters elsewhere in credit.