European structured finance market constructive on rates pause — market snapshot
European ABS and CLOs had a constructive week in the secondary market, reflecting better sentiment in broader credit

Janus Henderson expands ETF lineup
The new Janus Henderson Securitized Income ETF will invest in ABS, commercial mortgage-backed securities, CLOs, mortgage credit and agency mortgage-backed securities

Structured finance secondary market quiets down as volatility intensifies
Secondary market activity in European structured finance was subdued this week, in the wake of further market volatility sparked by the Israel-Hamas war

Hedge fund profit-taking prompts ABS sales as spreads soften in deteriorating macro conditions
More European ABS and CLO BWICs were on offer this week, as some hedge funds are selling their positions with a view to take early profits before the market widens further.  

What do you think?
The Creditflux CLO Census is back for its seventh instalment. Our annual stock-take of the global CLO industry begins on Monday, 2 October — it’s your chance to make your voice heard

Fund performance
Positive August for credit sees CLO funds on top again

Credit hedge funds
Credit hedge funds performance data

ABS spreads hold up in spite of September issuance deluge, while CLOs soften
Trading activity in European ABS has slowed down, as the market absorbs one of the busiest months for issuance for years

Capital Four beefs up US credit team with three new hires
The Danish-based credit manager is expanding its US presence

CLO manager raises new captive equity fund
The New York-based alternative asset manager raised a new CLO equity fund with a first close of USD 136m

Credit funds at a glance (September 2023)
A round-up of people moves and fund raising  

Credit hedge fund returns (September 2023)
Credit hedge fund returns  

CLO funds are hot in summer as they take nine spots in top 10 (Fund performance)
CLO funds took the lead through summer as the returns of the category index reached 1.88% and 3.18% in June and July, respectively. Both months saw a CLO fund as the top performer — Sound Point Meridian in June, and Oxford Gate Master Fund in July.

MUFG loses global head of structured products as departures continue
Another senior official has exited MUFG's structured products team, following Asif Khan's departure in June 

Secondary CLO prices continued to rise across June
US BWIC secondary prices continued to rise in June, according to a report by KopenTech. 

Panagram launches its second CLO ETF of the year
Panagram Structured Asset Management has launched its second CLO exchange traded fund of 2023, naming the fund Panagram AAA CLO ETF

Asset management firm creates new credit platform
Insurance and asset management firm Nassau launches new credit platform with more than $8 billion in assets under management. 

Blackstone hires sell-side CLO trading head
Blackstone Credit is beefing up its team with a new hire to the liquid credit strategies group. 

Proposed regulation changes could open up US CLO funds to UK investors
Proposed changes to the UK Securitisation framework may expand the investor base for US structured credit if passed.

Question your assumptions
Valuing CLO paper is complicated, and loan prepayments are one of the trickiest parts. When pricing a new issue CLO, the market generally assumes that 15-20% of loans will prepay their principal annually. This prepayment rate is important because it essentially determines the pace at which a CLO’s rated debt is paid off after the reinvestment period, when the CLO pays down its own principal.

Fund performance
Good month for CLO funds sees six in top 10 as Axiom sets pace

Credit hedge funds
Credit hedge funds performance data

Credit funds at a glance
Fund performance, fund raising and LP commitments

Sound Point becomes 5th largest CLO manager as Assured deal completes
Sound Point announced the completion of its partnership with Assured Guaranty yesterday jumping Sound Point into position as 5th largest CLO manager in the world.

Blackstone rethinks captive equity strategy
Blackstone has announced proposals to wind down its existing risk retention vehicle, Blackstone Loan Financing Limited (BGLF).