By raising billions, private credit funds are causing a seismic shift in leveraged finance
Private credit funds are amassing a huge war chest that’s permanently changing the complexion of the leveraged finance market

A trusted brand is no longer enough — CLO manager tiering is now based on a range of data
Investors now pay close attention to the characteristics of each CLO, rather than relying solely on the collateral manager’s overall reputation or size

Atlas SP joins new CLO arrangers vying for growth as sector booms
Apollo Global Management affiliate Atlas SP has joined the ranks of CLO arrangers, adding to the burgeoning number of new entrants eager to get into the lucrative business

This year sees elections affecting about 49% of the world’s population
There are many reasons to fear the populist right, but markets are more scared of uncertainty

The Last Tranche with Christine Ferris
In the latest edition of The Last Tranche podcast we talked to JP Morgan’s global head of CLO primary Christine Ferris about why she loves working with debut managers, despite the extra challenges they face coming to market.

Private credit is the regulatory fix that became an asset class
Institutional investors have pushed private credit to greater scale than either loans or bonds

As banks are forced to offload more risk, SRTs build an increasingly long list of advantages
Banks — even global systemically important banks — need additional capital. Problem CRE exposures, increased reserve requirements for expected credit losses under IFRS9/CECL, the entrance of government bond portfolio losses... 

Nordic countries have much in common — including a growing appetite for private credit
Norway, Sweden and Denmark share many similarities. The ‘Nordic model’ includes high standards of living, free-market economies, liberal welfare states, a tendency for workers to unionise, and a relatively narrow gap between low and high earners.

ESG initiatives should avoid unfavourable reactions by pursuing substance over form
By any financial measure, the collaboration of trans activist Dylan Mulvaney with Bud Light hurt the brand. What was formerly America’s best-selling beer saw its market share collapse — from over 35% in May 2023 to around 9% in June — because of a boycott by US conservatives after a 60-second TikTok video aired of Mulvaney drinking it.

Despite CLO gloom in Europe and greater take up of private credit in the US, markets on both sides of the Atlantic are similar
I’ve just returned from a trip to London, my first since taking on the mantle of editing Creditflux, and was struck as always by how stubbornly far apart the European and the US markets remain.

In Europe, captive CLO equity funds are a boon to CLO managers and the wider economy
The envy is inevitable. But criticism of these structures is entirely misplaced

Basel III looks likely to further increase banks investment in CLO triple As
Demand for CLO triple As has grown substantially over the past few years as more banking institutions, pension funds, asset managers and insurance companies discover this attractive asset class, which historically has never taken a loss.

Fed members need to restore their credibility, which could translate into excessive tightening
Rising wages have boosted spending and GDP — but the party can’t last forever

Borrowers are finding creative ways to address loan maturities
Amend and extends have been the loan market’s flavour of the year. At the same time, many CLO reinvestment periods are reaching their end because the reset market is virtually closed. 

Past returns: Truly transatlantic
10 years ago we reported on Axa Investment Managers’ plans to enter the US CLO market.

Letter from the editor
It’s a curious thing to come back to your beginning, but that’s where I find myself, writing this letter as the new editor of Creditflux. I first joined 17 years ago, fresh out of university. 

There were no surprise events… CDS did exactly what it said on the tin
Good tabloid headlines rely on the obverse of normal expectations and, over the years, Credit Suisse has furnished a deep seam. Banks are meant to be risk-averse, and of unimpeachable character and integrity. 

Past returns: Tracing Fair Oaks’ roots
10 years ago in Creditflux, we reported on Miguel Ramos Fuentenebro’s nascent firm GMB Partners securing its first mandate

Points up front: CLOs: safer than money in the bank
We’ve long extolled the virtues of CLO investments... 

Points up front: CLO PM to cheese-maker? You cheddar believe it
Hear the phrase “it’s close to maturity” and CLO investors might be put off by a bond that’s seen better days...

"Dispersion should manifest in potential fallen angel credits that are likely to proliferate"
IG and crossover names present a compelling alternative to shorting HY credit  

"All that remains is to thank all of you who have kept faith with my monthly confessions of insanity"
With the economic outlook now beyond a joke, Welshcake signs off amid denials he is actually a Welsh footballer  

They said it: "You have to question whether the vast array of CLO managers should... "
A credit investor questions the sheer number of CLO managers 

Points up front: Whatever the size, CLO performance dwarfs others
A graphic depicting the investment fund universe was doing the rounds on social media late in 2022...

“Pension fund managers should look to take advantage of a rare opportunity in corporate CDS”
The October sell-off in gilts highlights a glaring lack of exposure to CDS