We’ll get through this awkward patch
Wide liabilities have made pricing CLOs trickier in the past few months. But speakers at Creditflux’s CLO Symposium were optimistic that the arbitrage is OK — so long as you can place those triple As

"Wholesale moves into risk areas after internal changes should sound an alarm"
The composition of CLO managers is changing, so management styles may drift  

"It’ll take something special to drag my attention away from Depp/Heard, but Jerome Powell could just do it"
It’s not easy letting go of the past, but May heralds the start of something new in credit

"Derivative longs versus cash corporate shorts looks attractive, especially if we see a market sell-off"
Technicals are keeping cash credit spreads tight, but as central banks reduce purchases there will be relative value opportunities

Points up front: "It’s all me, me, me"
A study last month by the University of Marburg found that narcissistic fund managers are up to 34% more likely to deviate from their advertised investment style, and they tend to underperform non-narcissists.

"Faltering oil supply is lamentable at a time of strategic and moral shortfall"
We need to accept the pain and cut dependence on Russian oil today

Flexible approach is designed to deliver competitive performance
Nuveen’s Symphony CLOs benefit from teams who are active across a range of credit and bond funds

"The loan market is the septic tank for sub-single B LBO financing"
Portfolios of single name IG CDS are less complex and more liquid than CLOs

"Strong growth is not necessary for good loan or bond performance, but it keeps a recession at bay"
The picture in credit was looking good (even with inflation rising) until Russia invaded Ukraine

"Europe undermines itself through fossil fuel addiction while the UK baulks at expunging oligarchs"
Russia’s actions in Ukraine are deeply troubling, but there is hope for the future  

Points up front: Price is right on trend with new CLO ticker game
The best ideas often come about when you’re knee-deep in CLO tickers

"Pivot points in curves may not stay where they have been historically"
CTAs and CSOs are changing the way credit curves move  

Past returns: Ares constructs private CLO
In Creditflux 10 years ago we reported on Ares Management putting together a quasi-CLO in a bilateral transaction involving senior debt investor Sumitomo Mitsui Banking Corporation

They said it: "The third term is Jinping’s legacy..."
... He does not care about near-term growth."

"If omicron paradoxically lowers the temperature of the market, that may be no bad thing"
The global economy is well protected against omicron — and a mild infection may be beneficial

"Some observers believe Europe’s opportunity in private debt lies at the lower end of the middle market"
European private debt has lagged its counterpart in the US. But a growth spurt may not be far off

"We again have to flag up information in CLO marketing pitches that can mislead investors"
Cash-on-cash returns, default records and leverage statistics don’t always give CLO investors the full picture  

They said it: "The tone may have been too positive"
CLO market participants have been guilty of being overly bullish

"In 2022, being slow will not be such a bad thing"
St David losing its place as the UK’s smallest city would be a travesty. Replacing Libor might be worse

"Growth in credit products lets investors express sector-specific views as dispersion ticks higher"
Investors can use ETFs, volatility dispersion swaps or even bond baskets to trade dispersion

They said it: "Remove call option from CLO assets and liabilities"
A CLO investor, commenting in Creditflux’s CLO Census, comes up with a drastic way of making CLO cashflows a whole lot easier to model

Points up front: Definitely not an ex-parrot
One of the biggest credit fund launches last month was Arini, led by star credit trader Hamza Lemssouguer  

"If ESG funds only talk the talk, it is because investors, legislators and regulators don’t walk the walk"
Whatever an ESG fund means to you, it probably means something different to the next investor