Apollo scooped up $1.1 billion CLO paper amid UK LDI crisis, officials confirm
Apollo Global Management bought a whopping $1.1 billion of triple A and double A-rated CLO paper yielding over 8% in the three weeks of elevated bwic supply in October

Points up front: CLO managers didn’t take advantage of volatility, say CLO managers
Creditflux’s CLO Census shows CLO managers can be hard on themselves

US CLO equity payments drop to lowest since covid
US CLO equity payments have taken a hit in October due to a mismatch between one-month and three-month Libor and Sofr. 65% of loans in US CLOs reference one-month Libor, whereas all liabilities pay from three-month Libor or Sofr.

Fund performance: Wake us up when September ends
After a resurgent August, credit markets hit a rough patch in September, with every Creditflux index posting negative returns, and only 12.9% of funds in our listings showing a positive return.

Credit hedge fund returns (November 2022)
Credit hedge fund returns

CLOs can weather a short recession, but maybe not a long one, conference hears
The US economy is likely to enter a recession in the first half of 2023, attendees at IMN's ABS East conference heard on Tuesday. While the severity of the downturn is unknown despite the Federal Reserve aiming for a 'soft landing', CLOs are well positioned to weather the storm - as long as the recession is contained in a relatively short period

Leveraged loan issuance unlikely to return in force until late 2023, conference hears
The leveraged loan primary issuance pipeline is headed for an elongated pause and primary loan activity is unlikely to return dramatically until late in 2023, attendees at IMN's ABS East conference in Miami heard on Monday

US managers recalibrate as Euro CLO portfolio spreads rise: Moody's
CLO managers have had to readjust this year and data from Moody’s Investor Services shows weighted average rating factor scores for all US CLOs have held steady, while weighted average spreads have dropped 0.15%

What matters is what you do with it
CLO managers yearn for flexibility so they can take advantage when credit sells off. But it isn’t enough on its own: triple C-flex CLOs saw portfolios erode this year, while CBOs outperformed

Warning signs flash as B3 share of loans reaches record level
Credit analysts are sounding the alarm as the portion of the loan and high yield universe rated B3 or B- surged to a record level in the third quarter

Fund performance: August provides much-needed relief for CLO funds
.August fund performance 

Credit hedge funds (October 2022)
Credit hedge fund returns

   

Points up front: Exhibit A: every single CLO slide deck ever
In a recent note, the National Association of Insurance Commissioners said they needed “more data to showcase that CLO pools have outperformed the loan market”

US CLO syndication returns after long layoff as triple As settle tighter
After months where CLO liability pricing lagged the loan market, September saw a reversal as a vibrant investor base helped CLOs outperform

US loan index falls below 92 to almost wipe out gains since July
The S&P/LSTA Leveraged Loan Index sank to an average bid of 91.92 cents by Monday, down by two points in as many weeks, wiping out almost all the gains seen in the late-summer market rally

Boston-based investor looks to sell entire equity tranche of 2020 PGIM CLO
An unusual equity position is on sale on the secondary market today at 9.30am EST (2.30pm London time) as the entire equity tranche of Dryden 83 has been listed

CLO debt prices imply default rate exceeding forecasts, says Orchard Global
Current pricing of CLO debt tranches implies a default rate that is "far in excess" of the most pessimistic forecasts, according to Orchard Global Asset Management

CLO OC ratios tick higher in US, but August defaults add pressure: Fitch
Senior and junior overcollateralisation test cushions in reinvesting CLOs increased to an average of 9% and 3.9% respectively after a string of issuers defaulted in August, according to Fitch Ratings

Three control CLO equity positions hit market with another to follow
Three anchor US CLO equity positions were listed on the secondary market yesterday in what was a busy day for investors

B- share of CLO portfolios rated by S&P hits all-time high after 30 downgrades in a month
The share of CLO portfolio assets rated B- by S&P hit an all-time high of 29% after 30 loans were downgraded in August

Primary US CLO equity more attractive than secondary, says PineBridge
Primary market CLO equity offers better value to investments in the secondary market, according to a new article from PineBridge Investments

CLO engine sputters as loan recovery hits road block
US CLO issuance suffered a precipitous decline in August as firms struggled to adjust to the new pricing landscape

Market sentiment shifts as investors turn bullish on loans and CLOs
CLO market sentiment has shifted decisively in recent weeks with investors expressing more optimism than earlier in the year

Middle market CLOs facing "unexpected headwinds", says S&P
Middle market CLOs are facing 'unexpected headwinds' as their liability costs rise faster than their asset spreads

"The equity IRRs of enhanced CLOs are nearly all in the bottom decile of the market"