A fiery start to the year
Welcome to the first issue of the Creditflux magazine for 2026. Our cover pays homage to the Lunar New Year, which begins on February 17 and is symbolised by the horse

Software loans face further declines as AI fears persist
The rapid deployment of artificial intelligence is wreaking havoc with software companies that not long ago were darlings of the US leveraged loans market

‘This is a perfect storm for the loan market’
Investing Corner with Michael Sobol, global head of investing at Blackstone

US lev loans, CLO spreads move in opposite directions as market worries deepen over software loans
ANALYSIS: The unusual dynamic has been driven by worries about disruption from artificial intelligence, as investors fret about the potentially wide-ranging impacts across a range of sectors

Key theme for 2026 will be growth in the loan market – Eagle Point founder Tom Majewski

Growth in the loan market will be an important market driver this year, the founder of Eagle Point Credit Management says on the latest episode of Credit Exchange with Lisa Lee; also shares Eagle Point ressearch that shows LMEs at 2% per year on top of default rates

First Brands factoring provider Raistone seeks examiner over USD 2.3bn in missing funds
Alleged disappearance of third-party factored receivables sparks demands for the appointment of an examiner

First Brands' distorted balance sheets serve as warning to private credit lenders – Market React
Company secured fresh debt despite missing payments to Onset Financial; Special committee investigates double invoice pledging

Altice France new capital structure starts trading as investors consider M&A potential
Restructuring completed as secured debt trades; break-up of Altice France business possible through sector consolidation

Evolving M&A is transforming the capital formation landscape – KKR
'Critical' link between M&A and credit is set to fuel growth in private markets

Corporate default rates predicted to fall despite tariff uncertainty - S&P
Speculative-grade corporate default rates expected to fall on both sides of the Atlantic as trade tension uncertainty eases, but some concerns remain

Pimco urges caution in credit markets despite recent resilience
The resilience of the private sector has supported the credit market in the first half of the year, despite “whipsawing” market volatility, a new report from Pimco has found. 

Volatility could cause credit markets to break this year – TCW’s Bryan Whalen
PODCAST: Investors aren’t being paid enough of a premium for the risks in US corporate credit, TCW’s chief investment officer of fixed income told Creditflux’s Lisa Lee on the latest ‘Credit Exchange’ podcast  

Tariffs will push up default rates for several years, say agencies and managers
After an uptick in leveraged loan defaults culled weaker credits in 2024, many expected default rates to fall in 2025. But the uncertainty stemming from the Trump administration’s tariffs means those assumptions are now under threat

Lenders hit by LMEs will eventually have to increase the cost of capital
Chipping away at what has made loans successful has a cost

Private credit’s golden era never really ended – Blackstone’s Michael Zawadzki
On the Credit Exchange podcast, Lisa Lee speaks with the CIO of Blackstone Credit and Insurance about opportunities in volatile markets and the durability of private credit premiums

Fund performance
Entering the final three months of the year, CLO funds took a clean sweep of the top 10 spots in the Creditflux tables. October was strong overall, as over 85% of funds listed made positive returns

Altice France reminds creditors that unrestricted subsidiaries can be freely spun-off
Altice France's debt documents permit the XpFibre spin-off, and most credit agreements and high yield bond indentures permit the distribution of the equity in unrestricted subsidiaries

Strong run helps CLOs shrug off Altice downgrade
It may be the largest triple C downgrade in years, but the CLO market is relatively unperturbed by Altice’s fall from grace.

Credit hedge funds
Credit hedge fund performance

IACPM survey finds credit PMs still gloomy, but less so than last quarter
Respondents to the latest IACPM Credit Outlook Survey are still negative about future credit conditions, but less so than in previous surveys

Global Loan Highlights 1Q24: Don’t call it a comeback
Loan refinancing share hits historic high, but IG issuance stymies YoY global growth

Global corporate defaults on fastest pace since 2009 according to S&P
The number of corporate defaults has risen dramatically year-to-date, according to S&P Global Ratings, driven by a doubling of the rate of defaults in Europe

Credit hedge funds
Credit hedge funds

Credit funds at a glance
Credit funds at a glance

Wave of legal hires becomes a tsunami
In February alone legal heavyweights Allen & Overy, DLA Piper, Fried Frank, Kirkland & Ellis, Proskauer Rose and White & Case all announced the arrival of partners in the credit space