CLO strategies outperform again
In 2023, our index of funds investing in CLO tranches and equity returned 22.9%. In the first six months of this year, the index reached 9.9%, as these funds again delivered outstanding results

Reset focus shifts to pre-COVID deals
As spreads tighten, managers are looking to reset CLOs that priced before the onset of the COVID pandemic — even if this slightly increases the deals’ weighted average cost of capital.

US fashion stores: queueing up to exchange old debt
Fashionably loose covenants are allowing under-pressure retailers to turn expensive unsecured debt into senior notes

A year of credit insights

Picking the right time to sell loans
Loan trading data reveals sharp differences between CLO managers’ investment strategies as loan availability has a major influence on trading

Chasing rates in opposite directions
The interest rate dog is wagging the credit tail. While the ECB and Bank of England drive rates and credit ever tighter, rising US Libor could hit CLO equity returns

Theme parks: scream if you want to go tighter
Investing in theme park debt is like taking a rollercoaster ride. Lately it’s been a thrill, but there are always ups and downs

CLO surge through third quarter
US CLO volumes stayed strong in the third quarter, with GSO remaining as the largest manager globally and Citi once again taking the top arranger place

From Suez to CLOs
Indosuez Capital blazed a trail in CLOs and its ex-staff are now pivotal players across the industry

Preserving and conserving
Stable revenues, good liquidity and manageable leverage have kept yields in the consumer packaging sector steady in the long term

Credit spotlight - House of cards
Heavily indebted US home builder Hovnanian seems to be an ace away from collapsing – and yet its bonds are still trading at well above recovery value

Waiting for public funds to flow
Analysts reckon that government spending will prevent further falls in demand for construction materials – but more bad news could trigger a wave of downgrades

Spotlight: Shopping for survivors
Spotlight: Shopping for survivors

Looking for the local angle
After a year of double digit growth, investors in emerging markets local currency debt will have to work harder for returns

What’s in Babson Capital's box?
A sure way to gain some extra ‘street cred’ currently is to be in the running for a credit derivative product company

End view: A standalone credit strategy
End view: A standalone credit strategy

Main report
Main report

End view: Avendis Capital
End view: Avendis Capital

End view: Teaching Vienna the credit waltz
End view: Teaching Vienna the credit waltz

Investor profile: Aladdin turns correlation trader
Investor profile: Aladdin turns correlation trader

Investor profile: Absolute Capital, retail pioneer
Investor profile: Absolute Capital, retail pioneer