BSL volatility could create opportunities to deploy capital at attractive levels
A liquidity crunch in private credit will hit BSL CLOs — but there may be an upside for disciplined managers

Germany plans to invest EUR 108bn on defence in 2026 and EUR 152bn in 2029
Procurement struggles and foreign investment rules mean German defence spending isn’t quite the boon to private credit it might seem

CLO portfolios are diversified across sectors — but not by business model
Sector analysis isn’t deep enough to discover which companies will be boosted by AI — and which will nosedive

AI will upend operational models in a very short space of time
With online travel firm equities and life insurer CDS already off by a third, the systemic risk of AI is real

How to evaluate CLO managers
Portfolio manager incentives and MVOC volatility are crucial factors for CLO equity investors, says Dagmara Michalczuk

PE is about more than leverage
Private equity should align the interests of owners, operators and investors, writes Randy Schwimmer

BSL markets again demonstrated their fundamental resilience
In 2025, CLO issuance remained strong, despite LMEs, defaults and tariffs. Next year should be similar, if managers don’t become complacent

Huge lending from banks to private credit could cause systemic problems
There is little evidence of ‘cockroaches’ in credit. But in one sector, problems may just be hidden

As the US courts become more involved, the number of aggressive LMEs should decrease
Loan and CLO investors would be better served by working together

Private credit is too small to create a global financial crisis — but there are plenty of other storm clouds gathering
Total bankruptcy filings have climbed every quarter since June 2022

Psychology was a factor in managers’ reluctance to sell out of First Brands
We may overvalue what we already hold due to an emotional attachment

Markets are flipping their forecasts —from recession to overheating
There’s cause for worry as the Federal Reserve cuts into a booming economy

After eight years of Creditflux columns, Thomas Majewski looks back at the factors that have most impacted CLO returns
Fighting to be in the winning group in an LME is a skill managers must perfect

Post-COVID, companies are adroit at managing supply-chain disruptions
With plenty of capital seeking a home and high grade credits well positioned, IG spreads will stay tight, reckons Duncan Sankey

Success in a larger market requires increased discipline and innovation
As the US CLO market grows, lower quality loans and increased volatility create new challenges, writes Tetragon's Dagmara Michalczuk

Churchill’s survey of private equity firms suggests M&A is returning to normal levels
Senior PE executives are confident in both deal activity and returns

Differences in scale and sector exposure mean US and European CLOs offer different risks and rewards
European CLOs offer more sustainable arbitrage opportunities than US CLOs

As direct lenders seek efficient, scalable financing tools, private credit CLOs are growing fast
PCLOs have reached USD 135bn, or 13% of the overall CLO market

The market will not look kindly on managers that don’t reset their deals
In today’s CLO market, the choice is stark: reset or slowly perish

Are unusual deals from Clearlake and JPMorgan signs of things to come?
Deals that would have gone to public markets switched to private credit

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

CLOs that refinanced in 2024 are set to take advantage of market turbulence
There are opportunities for CLOs to build par through discounted purchases

Long-term CLO investments require strong distributions, healthy equity NAVs, and an extended life

Large managers have many advantages. But they don’t hold all the cards

Despite superficial similarities, CLOs and SRTs don’t have much in common