The length of a CLO’s reinvestment period has no substantive effect on its resilience to defaults
Three-year reinvestment CLOs are the norm, but debt investors should be locking in historically wide spreads for longer

They said it: "We’re going to change the world of finance"
Big ambitions in blockchain

Past returns: Trying a different route to Balliol
Five years ago in Creditflux we reported on Numen Capital absorbing credit hedge fund manager Balliol Capital

Points up front: From drafting CLO docs to writing crime thrillers
Nicola Bashforth, a popular figure in the CLO business, announced last month that she had left the industry to return to Lancashire in England and try her hand at writing novels

Points up front: How much do I owe you?
Payment systems in the credit industry had a bad August

The surge in index tranche trading has resulted in a deep, liquid and nuanced set of market dynamics
Welshcake emerges from his bunker to find CLOs still standing and the CSO market getting back to business

Wirecard shows that in an era of ESG analysis, governance still gets relatively short shrift
Wirecard’s spectacular collapse raises questions for auditors, regulators and agencies

Past returns: Not quite hitting the ceiling
In Creditflux five years ago, we reported that Credit Suisse Asset Management had embedded a Libor cap in the sterling-denominated debt issued by Cadogan Square CLO VI...

They said it: "Imagine a garden party and all of a sudden a big wasp shows up"
On Creditflux’s US CLO webinar last month, Napier Park’s head of US CLO investments Serhan Secmen described the March sell-off as a garden party

Points up front: Junior infrastructure debt or Julie for short
The most popular names of 2020 are Julia or Julie. No, we’re not talking about baby names, we’re referring to credit portfolios

Points up front: Introducing Downton Flux

During last month’s broadcast of the Creditflux Manager of the Year, we were inundated with messages of congratulations for the award winners via a live feed...

If you’re not finding black talent, you’re not trying hard enough
In the past few weeks, it has been easy to put up our billboards and tweet our condemnation of the treatment of black people. Now we need to change the way companies work

It takes just a few CLO collateral managers selling into the distressed community to start cracks forming
It is becoming increasingly clear that CLO collateral managers need to improve their collaboration efforts in distressed situations

They said it: Can I be a bond investor and invest in Netflix?
The response of a loan portfolio manager after we asked where should loan investors park their cash?

Points up front: Channelling Twain, Agent Smith and Mike Tyson
Lockdown can adversely affect one’s grasp of reality, and for credit portfolio managers this has manifested itself in a penchant for quoting famous (sometimes fictional) figures

Some managers calculated their CLOs were passing OC tests, only to find them failing the next day
Corporate credit downgrade storms have been weathered before, but this one has come out of season

There will surely be jewels in the high yield dung heap, but the risk-reward is more compelling in IG
Whatever the long-term effects of the pandemic, one thing stays the same: IG looks attractive

Past returns: Indirect lending
Five years ago in Creditflux we reported how banks were playing a role in European direct lending — an industry borne out of the fact that banks had reduced appetite for lending to small and mid-sized companies

They said it: There will be a re-tiering of managers after this
"There will be a re-tiering of managers after this"

I take strength from the composure investors have shown when told their payments are being deferred
It’s tempting to head to the beach or grab a CLO distribution, but investing is all about playing the long game

Where are the gloating I-told-you-so columnists who claimed CLOs would bring global destruction?
We have seen a measured response to the coronavirus crisis: fund managers aren’t collapsing and investors are not shunning CLOs

Past returns: Death by triple Cs? A step too far
15 months ago in Creditflux we reported that corporate credit downgrades, rather than defaults, were the biggest problem facing CLO portfolio managers

Points up front: Blame it on capitalism
You know it’s a tough month for returns when a hedge fund manager quotes Lenin and laments that capitalism and globalisation have failed to distribute wealth efficiently

Miscast as the villains of the 2008 crisis, CDS may prove to be the heroes of 2020
Credit default swaps provide investors with valuable signals on the depth of the coronavirus crisis