Equity investors call time on CSAM bond-flex CLOs
Two of Credit Suisse Asset Management’s three bond-flex CLOs were called by their equity investors in October, according to notices seen by Creditflux, despite both deals being within their reinvestment periods

Zombies demand brain work from tranche traders
Outperformance of junior tranches and underperformance of senior was the big theme in CDS index tranches going into December. But the picture began to change as Creditflux went to press

The right climate doesn’t guarantee a great bottle of wine. The skill of the winemaker is also vital
2020 could still turn out to be the best private credit vintage ever

All’s well that ends well in 2020 OC tests

Moody's considers upgrading 188 US CLO tranches
Moody's has put 188 CLO tranches from 114 US CLOs on review for possible upgrade, reversing an earlier policy in which the agency put large quantities of CLO notes on downgrade watch

Europe leads corporate credit rally, but US outperforms in CLOs
iTraxx Crossover has been the CDS market's outperformer this week, tightening over 30 basis points, or 11.4%, to trade at 235bp today. But in the CLO market, US deals have come out on top thanks to a BlackRock CLO that priced its double Bs at some of the tightest levels this year

Compression plays out as HY and European CLO double Bs outperform
Investment grade and high yield credit spreads have tightened in sync with each other this week, but CDS and CLOs alike underline that the big theme over the past month has been compression between investment grade and high yield

York axes European hedge funds and prioritises long duration assets as co-CIO leaves
York Capital Management has opted to axe its European hedge fund strategies and refocus on alternatives including CLOs amid a string of executive personnel changes

OC health check: 41 CLOs heal their breaches
147 CLOs breached an over-collateralisation test in October, down from 183 in September. 41 CLOs that breached an OC test in September passed all OC tests in October, most of which had October payment dates

Eagle Point bulks up on CLO equity
Eagle Point Credit Company deployed $35.1 million of its capital into CLO equity investments in the third quarter, buying $8.4 million in the secondary market and the remainder in primary, while selling just $4.8 million

Correction: JP Morgan shifts bulk of CLO portfolio to held to maturity
JP Morgan has shifted two thirds of its CLO portfolio to the 'held to maturity' part of its balance sheet, posting $31.15 billion worth of CLO holdings on 30 September of which $20.95 billion were held to maturity

Skybridge looks to cut structured credit and distressed debt exposure
SkyBridge Capital, the fund of hedge funds manager run by ex-White House communications director Anthony Scaramucci, is set to curb the structured credit and distressed corporate debt exposure in its SkyBridge G II Fund

Relative value has shifted towards CLO double Bs, conference hears
CLO double B tranches are on course for significant spread tightening, according to participants on day one of Creditflux's CLO Investor Summit on Thursday

CDS indices edge wider and positive skew opens as Pershing Square puts on new hedge
Credit indices have widened a touch this week but they’re back in focus with reports that Pershing Square Capital Management, led by Bill Ackman, has this week used CDS indices to hedge parts of its equity portfolio

Fed again warns of CLO risks as senior and junior spreads split
The Federal Reserve's latest financial stability report again warns of risks in CLO structures amid the continuing coronavirus pandemic

Skews flip in Europe after IG credit indices lead rally
Credit spreads are budging wider this morning after a relentless rally this week which culminated in iTraxx Main tightening 4.2bp (7.2%) and iTraxx Crossover tightening 18.8bp (5.54%) at the close yesterday

Chin up – it’s been a pretty good effort
CLO managers did well to survive the covid-19 crash in loan valuations — but they failed to fully capitalise on the ensuing volatility, say participants in the Creditflux CLO Census 2020

Elements work against CLO managers in Q3
CLO equity distributions fell in Q3 largely due to factors, such as Libor mismatches, that CLO managers can’t control. But these headwinds could turn in favour of managers in the near future

Robots rise for credit ratings
A fintech platform is launching this month that aims to use artificial intelligence to democratise credit ratings.

Less credit volatility expected in Q4 despite US election fallout
CLO issuance was expectedly low in the final week of October in the run-up to the US election, as issuers brace for what has historically been a volatility-inducing macro-event. But prominent market participants say the unprecedented economic backdrop resulting from the pandemic means the outcome of the 2020 election is less likely to move the dial as much as in cycles past

Credit rally slows but structured finance funds gain
Corporate credit spreads levelled off in September, which means that 63% of funds in the Creditflux database have just a single quarter left to make it to positive returns for the calendar year.  

Fund performance: Structured finance finds its footing with credit rally
For the first time this year we have seen a structured finance fund take the top spot, as Serone Key Opportunities Fund leads a multitude of other funds in this category in the top 10 of our monthly fund rankings

Ucits at a glance: European funds and CLOs head rankings
Ucits fund returns

Credit funds at a glance (November 2020)
A round-up of fundraising and people moves

Credit hedge funds (November 2020)
Monthly credit hedge fund tables