The market will not look kindly on managers that don’t reset their deals
In today’s CLO market, the choice is stark: reset or slowly perish

Are unusual deals from Clearlake and JPMorgan signs of things to come?
Deals that would have gone to public markets switched to private credit

CLOs that refinanced in 2024 are set to take advantage of market turbulence
There are opportunities for CLOs to build par through discounted purchases

Atos provides a French lesson for SRT investors

Fears about rates and the economy have dwindled and the outlook is positive
Bond yields are rising but capital markets remain full speed ahead

Tariffs, trade wars and inflationary pressures are unlikely to prevent CLOs doing well this year
No two years are the same — but 2025 is shaping up to be strong

Secondaries have become an essential part of the private equity ecosystem
As PE funds hold companies for longer, GPs are finding new ways to generate distributions

We expect to see global banks as the leading buyers of CLO triple As in 2025
As the market finds steady footing in an elevated rate environment, a big shift is happening at banks: after a brief period of restraint, they’re getting back into the business of lending and underwriting.

In a declining rate environment, CLO debt can still deliver strong performance
We believe investors are still better off investing in CLO debt than in high yield bonds, despite a declining rate environment

Rate cuts won’t hurt CLO equity cashflows — and may even boost them
With rates poised to fall, some investors are worried about the impact of rate cuts on CLO equity cashflows. But in our view, the change in rates isn’t really a big deal on the way up or down for CLO equity.

By raising billions, private credit funds are causing a seismic shift in leveraged finance
Private credit funds are amassing a huge war chest that’s permanently changing the complexion of the leveraged finance market

We understand why the NAIC is open to a new framework
The NAIC is right to tread carefully as it looks to protect its members from ratings arbitrage

The markets are supporting high reset and refi volumes —but sometimes calls are a better option
Broadly syndicated loans and CLOs kicked off 2024 with a nice rally. As a result, we are seeing a resurgence of majority CLO equity holders exercising their rights to refinance, reset, or even call their CLOs. 

Points up front
Blame it on the Bad Bunny; End of an era

Rates are moving lower, which makes CLO equity look better versus loans
The latest edition of The Last Tranche podcast talked to new Octagon CEO Gretchen Lam about triple A spreads, CLO redemptions and whether investing in third-party CLO equity makes sense again

Despite CLO gloom in Europe and greater take up of private credit in the US, markets on both sides of the Atlantic are similar
I’ve just returned from a trip to London, my first since taking on the mantle of editing Creditflux, and was struck as always by how stubbornly far apart the European and the US markets remain.

Fed members need to restore their credibility, which could translate into excessive tightening
Rising wages have boosted spending and GDP — but the party can’t last forever

"If earnings weaken, equity and credit markets could enter a new phase in the sell-off"
High yield has outperformed equities since the sell-off this year, but that relationship could change

It is unfair to extrapolate from one lemon on the lot that the whole fleet of cars is defective
As a barometer of Europcar credit risk before the credit event the CDS contract did a credible job