Banks set to offer client clearing of credit index options
Bank members of LCH, the London Stock Exchange's clearing arm, will soon start offering client clearing of CDS index options, as the industry prepares for its next ramp up of margining requirements

CME touts forward-looking Sofr term benchmarks
CME Group has begun publishing term benchmarks for the secured overnight interest rate (Sofr) as part of the global push to move away from Libor in financial markets

Fund managers brace for EU’s new sustainability regulations
European fund managers were faced with new environmental, social and corporate governance (ESG) regulations in March, which enhance disclosure requirements around sustainability

ESG drive poses little threat to CLO returns or flexibility, says Moody's
Environmental, social and governance investment criteria are not impairing CLOs either in flexibility or performance, Moody's Investors Service has found in a new report

Sofr fix nears launch as CLOs face term rate void
Three months into 2021, grounds for optimism have grown little that a term rate will be found before the end of the year to replace Libor in loans, CLOs, CDS and other contracts. But hopes are rising that solutions such as credit spread adjustments could help mitigate performance uncertainty

Differences emerge in shape of new CLO bond buckets
The future of bonds in CLO portfolios is beginning to take shape after amendments to the Volcker rule came into effect in October last year

European CLO trades wide in secondary amid CLO risk retention issue
A European CLO manager has been caught in a rare situation owing to risk-retention compliance for its 2015-vintage Euro Galaxy IV – and CLO traders have factored this in the secondary market

LCH reports 60% growth in CDS clearing
LCH, the central clearing house of London Stock Exchange Group, has reported growth in clearing of index, option and single name CDS during 2020

CLO issuers flex their bond muscles
Some panellists at Creditflux’s US CLO Investor Summit pointed to structural difficulties, but the consensus was that flexibility — particularly the ability to buy bonds — could improve performance

New valuation rules to 'severely limit' fixed income cross trades
Law firm Practus believes that new SEC rules will limit a fund’s ability to cross-trade fixed income investments after the regulator adopted fund valuation rules in December

CLO managers gain time with Libor deadline extension
US CLO issuers have been given legroom ahead of the transition away from Libor, but as one CLO investor puts it: “While it’s an important development for the CLO market because it alleviates some of the Libor stress, it does not make the problem go away.”

Elfa forms private debt committee
The European Leveraged Finance Association has launched a new private debt committee which aims to providea forum for direct lenders 

CLOs and leveraged lending do not significantly threaten stability, finds 'congressional watchdog'
CLOs and leveraged lending do not significantly threaten financial stability, according to a report by the US's Government Accountability Office (also known as the congressional watchdog) released yesterday

BlueCrest settles SEC charges of favouring internal fund over client capital
BlueCrest Capital Management has agreed to pay $170 million to settle charges related to a fund that managed internal capital

LCH starts clearing US credit index options
LCH, the central clearing house of the London Stock Exchange Group, has expanded its CDSClear service to clear US credit index options

Real estate debt firm gets over SEC settlement with $180 million fund raise
A Miami-based real estate debt specialist has raised $180 million for a credit fund that appears to have a flexible investment mandate

Loan market delivers best one-day returns since April due to US election and vaccine
The S&P/LSTA Leveraged Loan Index recorded its best single day returns since April on Monday as investors celebrated in a string of positive developments that sent markets into overdrive

Six European CLO managers switch to Ireland after Dutch tax hike
European CLO managers have been rapidly shifting their Netherlands-domiciled SPVs to Irish DAC vehicles, according to sources, including PGIM, Barings and Cairn

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

European CLO managers switch legacy deals to originators ahead of Brexit deadline
A few European CLO managers are undertaking house keeping ahead of the end of the Brexit transition period in January, by switching the method by which their legacy CLOs comply with risk retention from sponsor to originator

US election result is 'benign outcome for financial markets', says Nuveen
This week's election in the US is a 'benign outcome for financial markets' even as the final result of the presidential election remains unknown, according to a new report from Nuveen's global investment committee

Partners triggers frequency switch event on European CLO
Partners Group has made the rare decision to flip the frequency switch on one of its European CLOs

European CLOs should obtain STS certification, urges ACC
The Alternative Credit Council has urged policymakers to allow European CLOs to obtain Simple, Transparent and Standardised (STS) certification in a bid to boost non-bank lending

CLO market splits en route to Volcker rule compliance
Volcker rule amendments freeing CLOs from many of the restrictions of the past decade came into law on 1 October, allowing managers greater flexibility in how they invest their portfolios. But the market is split on how exactly CLO documents should be structured as the first slate of unrestricted CLOs print

Kroll pays $2 million settlement over control failures in rating CLOs and CMBS
The Securities and Exchange Commission has charged Kroll Bond Rating agency more than $2 million for failures related to rating CLO combo notes, as well as in the CMBS sector