High yield / loan slowdown affects year-end projections and pricing: Barclays
A sharp decline in primary market activity means expectations for high yield bond and even leveraged loan issuance need to be lowered, say Barclays credit strategists. And that in turn has implications for relative value

CLOs look attractive after corporate rally - but not all tranches: Barclays
Rallying corporate cash credit spreads over the past two weeks have widened the basis with CLOs and made these products look attractive again, according to Barclays strategists

Hidden loan tail risks and mounting single B exposure could pose problem for CLOs: Barclays
A solid rally for leveraged loans this week - against returning weakness in bonds - has put focus back on the market, which seemingly has little tail risk priced in. But short term support factors and a dwindling triple C bucket mask the quality skew, warn Barclays strategists in a note today - which could spell downgrades for single-B minus rated loans

CLO equity returns to flatten while Sofr transition gains fresh impetus: BofA
CLO equity returns are forecasted to be relatively low in the first half of the year, and as this plays out there could be greater incentive for equity investors to push for a switch in CLO benchmark to Sofr.

CLO equity could get hurt by mismatch in credit spread adjustments: Barclays
The possibility that borrowers and sponsors start to use their clout to scrap credit spread adjustments from leveraged loans poses a risk for new CLO equity, while legacy deals also face transition challenges

CLO investor cash balances at lowest levels since 2009: JP Morgan research
A survey conducted by JP Morgan has suggested that CLO investors' cash balances are at their lowest levels since 2009 - but most managers want to add risk in the coming months 

CLO lower cap stack will outperform with $175bn new issuance in 2022: JP Morgan
Equity and lower rated tranche investors will do best as $175 billion of global new CLO issuance arrives in 2022, predict JP Morgan strategists in their annual outlook, taking market size to $1.2 trillion

Loans will be winners in bearish year for credit: BNP Paribas
Floating rate loans are best positioned for a year of widening credit spreads, but high yield bonds will outperform investment grade and EM credit is set for losses, says BNP Paribas in its 2022 outlook

CLO resets drive equity returns to highest in five years: JP Morgan
Equity investors in US CLOs are earning, on average, the biggest returns of the past five years, finds JP Morgan – with deals reset this year having done most to raise the numbers

Sofr transition timing puts CLO debt and equity at odds, says BNP Paribas
CLO investors look to have tough conversations ahead on the structure implications of the transition from Libor to Sofr, with BNP Paribas strategists noting CLO debt will benefit from an early move while equity tranches would do better to wait

BofA revises global CLO new issuance forecasts upwards but refi/reset forecasts diverge
CLO strategists at Bank of America have boosted forecasts for European and US CLO 2021 new issuance volume for the second time this year. But projections for refi/reset volumes across the continent have been tweaked in two separate directions

CLOs stand to win from US capital cost refinement, says BofA
A move by US insurance regulators to refine the capital charge framework for structured products will make CLOs more attractive versus corporate bonds, according to Bank of America strategists

CLO demand to drive loan outperformance over bonds: BNP Paribas
The buying power of CLOs and funds could mean leveraged loans rally further and outpace high yield bonds, says BNP Paribas' credit research team

JP Morgan raises 2021 US CLO forecast to record $135 billion
JP Morgan's research desk has raised its US CLO new issue forecast for 2021 to $135 billion

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

CLO investors still hungry for triple As and double Bs, says JP Morgan
Most CLO investors are looking to add risk through deals in the months ahead, with very few inclined to reduce exposure, a JP Morgan survey has found - despite the historic flood of issuance in the first quarter of this year

CLO equity ‘top trade’ could reach mid-teens returns, says JP Morgan
CLOs’ strong start to the year, in which the asset class has asset class has made gains against a sell off in government and corporate bonds, has put equity tranches on course for double digit returns in 2021, according to JP Morgan strategists

UN PRI's upcoming report on ESG in CLOs finds bar is very low
In a preview of the upcoming report, Carmen Nuzzo, head of fixed income at UN Principles for Responsible Investment, reveals to Creditflux key highlights from its ESG in securitisation report

ESG growth in CLOs has momentum in 2021, say JPM strategists
ESG investing in securitised products such as CLOs have 'momentum for growth in 2021' despite very slow volume growth and lack of progress in standardised scoring over the past year, say JP Morgan strategists in a research note

AGL hires ex Wells Fargo CLO research head Preston
AGL Credit Management has hired former Wells Fargo CLO research head David Preston

Buy CLO equity to capitalise on reflation, says JP Morgan
CLO equity stands out in a tightly priced market as offering up to double digit yields, say JP Morgan structured credit strategists, who posit it as their top trade

Wells Fargo parts ways with star CLO research team
Wells Fargo is parting ways with its star CLO research team led by managing director David Preston

Senior bond-flex CLO tranches are 'cheapest bonds within securitised products': BofA
Triple A-rated notes of bond-flex CLOs are 'one of the cheapest bonds within securitised products', according to a new research paper by Bank of America

CRE CLOs show resilience to sector decline in office properties, says Moody's
Commercial real estate CLOs are protected against a sector decline in office properties, Moody's has said in new research. CRE CLOs have structural protections, while portfolio office properties are largely in lower-cost areas with diversified economies and tenants, it argues

Size matters: exposure to small loan facilities worse than covid industries, says BofA
CLO managers that hold a higher portion of smaller sized facility loans in their portfolios have performed worse through the pandemic, according to a Bank of America research paper