The financial crisis was the making of ’em
Some of the largest and best performing CLO managers before the crisis were fairly nimble by today’s standards — but these 1.0 outperformers are now among the biggest names in the industry

US regulation drives insurance money towards credit ETFs
Institutional investors are increasingly allocating to credit exchange-traded funds (ETFs), but their motivations are changing. These vehicles are famed for their liquidity, but several investors are said to be pouring money into them for the long term amid regulatory changes which have made ETF investments more favourable

Derivatives market jumps forward on Ibor fallbacks
The derivatives market has moved closer to a consensus on how to replace interbank offered rates (Ibors) in contracts, with the International Swaps and Derivatives Association (Isda) finding that most market participants favour a retrospective rather than forward-looking approach for benchmark fallbacks

Points up front: “I always think of myself as Bruce Lee when I’m investing in CLO equity”
An analytical mind, a strong network of industry contacts and an eye for value are vital for a competent CLO equity investor. But don’t forget the one-inch punch

Europe/US relative value play opens up in battle of the bears
All indications point to 2019 being a tough slog for credit on both sides of the Atlantic, but a consensus is forming that US high yield has the most to worry about. That, say strategists, could present opportunities for those looking to trade one region against the other  

CLO warehouse terms free up as stakeholders negotiate
CLO warehouse terms are becoming more flexible as dealers compete for business, and equity investors seek to extract maximum value from their deals. Sources say that warehouse maturities are more frequently rising to three years for certain deals in the US market, and that banks may be moving away from the mark-to-market warehouse model  

Risk retention was difficult, but worth it
When US skin-in-the-game rules were announced in 2014, it was clear they would be a burden for managers. But no one expected risk retention funds to bring new types of investor into CLOs

Finding the hidden value in success
Learning from one’s mistakes is often cited as key to professional development. However, widening this perspective and paying attention to things that go well can further improve performance

Raising a glass to women in CLOs
Creditflux’s inaugural Women In CLOs event took place in New York last month, with a wine tasting forming the perfect backdrop to an evening of networking

Junior debt set to be more attractive, but...
Clearly there are more eyes on the CLO market than ever. But some speakers at the CLO Investor Summit were warning of masquerading managers, free-riders, borrower weapons and zombies

The financial crisis was the making of 'em
Some of the largest and best performing CLO managers before the crisis were fairly nimble by today's standards - but these 1.0 outperformers are now among the biggest names in the industry. 

Selwood plants third credit opportunities fund with $150 million
Selwood Asset Management has launched a third iteration of its global credit opportunities strategy, according to 14 December US regulatory filings

GSO co-founder plans new credit business
GSO Capital Partners co-founder Tripp Smith is launching his own credit management firm, according to a report by Bloomberg

Cash-CDS basis set for comeback after "falling knife" mishap, predicts BNP Paribas
The beginning of 2019 should revive interest among credit investors to trade the basis between cash bonds and credit default swaps, according to BNP Paribas strategists – following what they term “falling knife” dynamics in this year’s fourth quarter

Cairn sheds light on single-investment SRT fund
Fresh details have emerged on Cairn Capital’s new significant risk transfer (SRT) funds with the manager informing Creditflux that Pathfinder Fund III was structured such with US requirements in mind

Cairn adds two SRT funds to its roster
Cairn Capital has raised $150 million across two significant risk transfer (SRT) funds - with differing mandates - according to an announcement by the firm

Deutsche Bank refinances CLO backed with trade finance assets
Deutsche Bank has brought a $3.5 billion CLO backed by trade finance that includes a first-loss piece issued at par

Creditex obtains CFTC swap execution facility exemption
Creditex, the electronic brokerage for corporate bonds and credit default swaps, has been granted an exemption from a requirement to register with the US Commodity Futures Trading Commission as a swap execution facility

Crossover converges on CDX HY as Fed, earnings and heavy technicals take hold
Big moves of single name credits continue to hold sway over the iTraxx Europe Crossover credit default swap index, whose underperformance of US counterpart CDX HY has extended during the past week amid a big technical repositioning of flows

Blackstone builds on multi-asset approach with fifth fund
The new vehicle will invest directly into Blackstone deals across its alternatives platform

Market favours retrospective over forward-looking approach to Ibor benchmark fallbacks, says Isda
New benchmark fallbacks for derivatives contracts that reference interbank offered rates are likely to be based on the “compounded setting in arrears rate” and the “historical mean/median approach to the spread adjustment”, the International Swaps and Derivatives Association has said

Credit sell-off has room to run and pricing is out of whack, says BNP Paribas
The credit market sell-off could have further to go despite recent widening and is “in the process of a late-stage business cycle unwind”, according to a strategist note seen by Creditflux

Global CLO round-up: there's something for everyone as CLOs put on a good spread
This week, equity investors have something to be thankful for with triple A CLO spreads showing signs of tightening

Norinchukin's CLO holdings jump by over 50% since March
Norinchukin’s appetite for CLOs shows no signs of relenting

European CDS index tightens inside US even as bonds languish
Credit derivatives markets have hit a key point of trend reversal this week, with the iTraxx Europe five-year CDS index trading inside its US counterpart CDX IG for the first time since May