Basis and capital structure strategies zing for Xaia as market anomalies multiply
April was another challenging month for most funds. But some managers were able to take advantage of relative value opportunities and growing investor appetite for this form of investment strategy

Index equity tranches show resilience in face of default spike
Lower credit index volatility in May refocused investor minds on idiosyncratic risk, with some give-up by previously outperforming equity tranches

Fund managers gear up for talf 2.0 investment potential
Institutional investors have been pouring money into the talf-focused (term ABS loan facility) funds, with ArrowMark, Loomis Sayles and Nuveen among the managers to benefit

Fund performance: CLO tranches move up
April returns managed a partial bounce back after a tumultuous March. 82% of funds listed in the Creditflux database made positive returns, showing at least small signs of recovery after 90% of all funds listed posted negative returns in March

Credit funds at a glance (June 2020)
A round-up of fundraising and people moves

Ucits at a glance: Ucits begin recovery phase
April returns prove positive for Ucits funds as 85% of those listed in the Creditflux database have moved into the black after a rough March

Ellington holds first close on structured credit dislocation fund
Ellington Management has launched a mortgage recovery fund

ABS market holds strong as talf date approaches
The US Federal Reserve announced last week that the term ABS loan facility's first subscription date for loans backed by eligible asset-backed securities (ABS) will be 17 June, but before the Fed has even spent a dollar, talf has already been a success, says Tom Sweeney, co-head of structured credit finance at DWS Asset Management.

TCW targets $1 billion for talf fund and attracts two pensions
Two pensions have allocated a total of $150 million to TCW's TALF Opportunities Fund, managed by TCW Group 

Fairfax pension mulls $90 million commitment to two talf funds
The Educational Employees' Supplementary Retirement System of Fairfax County is mulling a $90 million investments in term asset backed lending facility funds managed by Alliance Bernstein and Nuveen

Minnesota pension's 2020 credit allocations hit $1 billion
Minnesota State Board of Investments has earmarked $400 million across to two credit managers in a private market update. The commitments mark $1 billion allocated to credit in 2020 by the pension

Nuveen targets $500 million for 'pure play' talf fund
Nuveen is aiming to raise up to $500 million for a 'pure play' term asset backed loan strategy, Creditflux understands

SLC raises $500 million for talf fund
SLC Management, the asset management business of Sun Life Financial, has held a final close on a term asset-backed securities loan facility 2020 strategy at $500 million

US pension forms $100 million talf sub-committee as 'window of opportunities closing quickly'
Fresno County Employees Retirement System has formed an ad hoc committee authorised to commit up to $100 million to a term asset-backed securities loan facility strategy, according to an audio recording from its 5 May board meeting

Listed CLO fund rebounds in April with 5.7% gain
US and European CLO equity tranches brought in gains of 10% in April for the fund, US CLO debt 12.1%, ABS 0.6% and bank balance sheet transactions 0.3%

Magnetar wins $400 million for illiquid credit mandate
Los Angeles County Employees Retirement Association has allocated $400 million to Illinois-based Magnetar Financial at its 13 May board of investment meeting, according to recently released minutes

CLO market welcomes 'favourable and surprising' revisions to talf, but issues remain
CLO participants are welcoming the 'many favourable and even pleasantly surprising' revisions to the term asset backed lending facility announced by the US Federal Reserve today to address previous concerns. This could help reignite the market, but some issues were not addressed

US manager wins $250 million for talf managed account
Massachusetts Retirement Board has earmarked $250 million to a term asset backed facility managed account, according to documents seen by Creditflux

Four US pensions eye talf fund allocations
Four US pension funds are seeking proposals from investment managers to oversee term asset backed loan facility programmes, according to documents seen by Creditflux

Where are the gloating I-told-you-so columnists who claimed CLOs would bring global destruction?
We have seen a measured response to the coronavirus crisis: fund managers aren’t collapsing and investors are not shunning CLOs

The CMBS talf proposal is simple and effective. A similar approach for CLOs would be welcomed
It’s great that government is trying to boost securitisations, but they’re missing the mark for CLOs

Sculptor doubles global credit exposure in master fund amid dislocation
Sculptor Capital Management has doubled its global credit exposure in its Master Fund during the covid-19 volatility, according to the firm’s Q1 earnings call

CSOs are hurting but will emerge stronger, say sources
It is unsurprising that bespoke synthetic tranches have suffered during the covid-19 crisis, as they are backed largely by real money investors that have gone outright long credit risk. But more noteworthy and reassuring, say sources, is that most have held firm in their positions and look set to stick with the asset class — in contrast to the 2008 global financial crisis exodus

Prophet closing hedge fund due to weak CLO liquidity
Prophet Capital is winding down its $500 million-plus CLO and structured credit hedge fund. The firm cites poor liquidity and uncertain valuations as the biggest factors behind its decision

Fund performance: Index tranche investors make it work from home
March brought a drastic drop in return figures as covid-19 swept across the globe, as Orchard tops the Creditflux performance tables