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

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

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"

Ucits at a glance: Ucits see red in a tough June for returns
June marked an exceptionally tough month for Ucits funds, as none of those listed in the Creditflux database made it into the black

Credit hedge funds (August 2022)
Credit hedge fund returns  

Fund performance: Select funds shine in dreary June for credit hedge funds
Credit funds suffered through June, as only 8% of listed funds reached the black. This made June the fourth month in a row in which negative returns increased

CLO equity arb gets squeezed but investors eye recovery swing
The CLO equity arbitrage endured a wildly volatile first half of 2022, but observers say the time could be right to buy into the asset class

Oxford Lane reveals reinvestment goal as it trades over $200 million in secondary CLOs in Q2
Senior officials at Oxford Lane Capital Corp described the firm's second quarter approach to CLO investing on a Tuesday earnings call, revealing trades of CLO equity and junior debt amounting to $237.8 million

CLO market mood sours amid bitter economic outlook

History suggests best CLO equity returns come after periods like today's, say Oxford
Research published by Oxford Funds argues that stressed periods in the loan market are typically followed by the best CLO equity returns, suggesting today's vintage of CLO equity could be among the best performing

Credit Rendezvous: Investors try to avoid suplex city as recession and inflation reform tag-team
Credit investors getting ready to lock up against that familiar 1970s pairing of inflation and recession. But the hard-hitting tag team has picked up some new moves, causing floating rate outperformance to give way to underperformance; synthetic credit to outperform cash; and CLO terms curves to reshape into barely recognisable positions

CLO counterparties hunt for signs of optimism: SFIG conference
Leveraged loan and CLO investors are hunting for signs of optimism as they face the prospect of a US recession

Fund performance: Rocky May piles on the misery for credit hedge funds
Negative fund performance soared in May

Credit hedge funds (July 2022)
Credit hedge fund returns

Ucits at a glance: LBBW shines as Ucits take a turn for the worse
Ucits fund returns

Oaktree identifies CLOs among top picks in credit
Oaktree Capital Management’s head of performing credit Armen Panossian has outlined CLO tranches among his three favoured investments in this market