All’s well that ends well in 2020 OC tests
Swathes of CLOs failed over-collateralisation tests last year, but unlike the drawn-out recovery following the 2008 financial crisis, the return to compliance after the covid-19 crash was rapid 

Fund performance: CLOs look to continue recovery with end of the year in sight
CLO funds claim the majority of positions in our top 10

Ucits at a glance: Year-to-date returns head for double figures
Ucits funds generally performed well in October as 75% achieved positive returns

Credit funds at a glance (January 2021)
A round-up of fundraising and people moves

Credit hedge funds (January 2021)
Monthly credit hedge fund tables

Vaccine boosts credit as PE firms open up to bridge loans
The leveraged loan and CLO markets ended 2020 on a long-awaited high after multiple vaccines for covid-19 were rubber-stamped by regulators

Napier Park flexible credit fund powers to 17.8% gains in 2020
A European credit fund run by Napier Park Global Capital is up 17.8% in 2020 through to the end of October to sit atop of the list of funds by that metric

Past returns: Barclays gambles and wins on Zohar
Five years ago in Creditflux, we reported how Barclays had made gains from its investment in the debt of Zohar CLO I, a deal which was filed into bankruptcy by manager Patriarch Partners a few months earlier

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

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

European CLOs will perform well in 2021 but expect new deal quality drop, says Moody's
In a report published today, rating agency Moody's said CLOs will continue to perform due to credit enhancement levels and despite rising defaults. But CLO portfolio overlaps look set to increase 

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

IG and crossover indices converge while European CLO double Bs rally
iTraxx Crossover is again outperforming Main today with the investment grade index widening 0.11bp to 52.56bp while the crossover index is 2.42bp tighter to 296.99bp. Meanwhile bank research signals that junior CLO tranches could benefit as investors look at covid industries through a different lense 

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

European CLO double Bs jump wider amid October macro worries - but seniors stand firm
The fortunes of investment grade and high yielding European CLO tranches have gone in opposite directions in the last month. In a year where relative value has shifted several times, Creditflux analysis shows that new issue European CLO double Bs have blown out by 16.5% in October versus September, while triple A-rated notes have tightened 6.7% in that time

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