Ucits at a glance: Ucits funds march on and erase Q1 losses
95% of Ucits credit funds listed with Creditflux posted positive returns in June to keep up the momentum from May when all but one fund was in positive territory

Credit hedge funds (August 2020)
Monthly credit hedge fund tables

Don’t be a hero: managers opt to go market-neutral
There’s yet more volatility in store later this year — that’s the consensus according to credit portfolio managers that have spoken to Creditflux. What they are unsure about is the scale and direction of this movement, which is leading them to prune their portfolios with an emphasis on market-neutral tactics

Rampant technicals push cash and CDS in different directions
Central bank interventions, primary market issuance and high yield defaults have conspired to create major distortions in credit performance, which sources say are ripe for opportunistic trading.

They said it: "Imagine a garden party and all of a sudden a big wasp shows up"
On Creditflux’s US CLO webinar last month, Napier Park’s head of US CLO investments Serhan Secmen described the March sell-off as a garden party

New funds move in as tranche trades take off
Synthetic structured credit funds are proving popular with investors amid a spike in index tranche trading

Distressed to the nines: Noble joins CDX HY default tally
Noble Corporation, a US offshore drilling company, has triggered a bankruptcy credit event, the Americas Determinations Committee has ruled - making it the ninth default in the on-the-run CDX HY index

Banks and high yield corps lead charge as results prompt European rally
High yield corporate credit is today's outperforming part of the market as European credit rallies back from its recent wides, as the latest round of earnings proves stronger than many had expected

GSO names additional portfolio manager for three listed credit funds
GSO Capital Partners has added Robert Post as a portfolio manager to three listed credit funds, effective 1 August

Convertible notes make final list for delayed Chesapeake auction
A delayed credit event auction to settle Chesapeake Energy Corporation CDS will proceed on Tuesday with convertible notes included as deliverable obligations, after the Determinations Committee ruled these were eligible

High yield traders take stock amid Crossover/HY compression
A convergence trade is underway this week in the high yield credit market, with US index CDX HY reaching its nearest level versus European counterpart iTraxx Crossover since the start of June

First movers in focus for CDS as market grinds to new tights
First is the operative word in corporate credit movers this week, with UK transport firm Firstgroup leading European CDS improvers while FirstEnergy Corp heads the worst performers in the US

Europe hits post-covid tights on hard-fought recovery package deal
European credit spreads are hitting their tightest prints since the coronavirus outbreak began, with European Union leaders having agreed a €750 billion recovery package following protracted talks

Former JP Morgan credit correlation head launches $200 million fund
The former head of credit correlation trading at JP Morgan has launched a global credit fund management business with $200 million of assets, according to market sources

Chesapeake auction delayed over convertibles question
A credit event auction to settle Chesapeake Energy Corporation CDS has been postponed for at least two weeks while the Determinations Committee seeks clarity on status of the company's convertible bonds

Chesapeake auction could face delay over convertible conundrum
A credit event auction next week to settle Chesapeake Energy Corporation CDS could be postponed as uncertainty hangs over the status of the company's convertible bonds

Shot in the arm for US credit as vaccine results prompt outperformance
US credit markets have gained a chance to catch up with European improvement this week, after positive results from a coronavirus vaccine test prompted US outperformance, particularly in high yield

Credit Rendezvous: record fiscal stimulus provides pick-me-up
Credit markets had a mini bounce-back in the second quarter as central banks poured cash into the economy. But there is great uncertainty about the effects of a second wave of coronavirus. As part of our quarterly report on credit - the Credit Rendezvous - Creditflux spoke to experts across 12 segments of the credit market

US/Europe gap widens as states roll back reopening plans
Decoupling of US and European performance is the stand-out feature of credit this week, in which fears of a pandemic second wave and further US/China wrangles hold market improvement in check

Chesapeake deliverables point to big pay-out on CDS
An initial list of deliverable obligations to settle CDS referencing Chesapeake Energy Corporation at auction points to a pay-out of over 97 cents to protection buyers - higher than where five-year contracts are priced

Chesapeake CDS auction date set
Dealers have set a date to settle Chesapeake Energy Corp CDS, in what will be the thirteenth credit event auction of 2020

California Res auction brings 99 cent problem for CDS protection sellers
An auction to settle CDS referencing California Resources Corp has settled at just 1.125 cents, meaning a 98.875 cents pay-out to protection buyers

Tabula launches ETF to short US high yield credit
Tabula Investment Management, a fixed income exchange traded fund (ETF) provider, has added a product that offers short position exposure to North American high yield corporate credit

Europe leads opening rally, with Asian boost to autos, banks and commodity traders
A bullish tone in Asia around the economic recovery from the coronavirus pandemic has carried over into the rest of the credit market at the start of the week, taking European spreads tighter and pointing to a solid opening for the US after its long weekend

Europe outshines US despite caution on inflows and second wave
A week characterised by lower volatility and awash with returning European high yield issuance is ending on a cautious tone, with the US market on holiday and 'second wave' covid concerns bringing a pause to the credit rally