The IRR of CLO equity is driven by far more than just initial spreads
No one ever says the CLO equity arb looks great. But even in particularly challenging periods there are ways for equity investors to generate strong returns

They said it: "I saw a CLO OM which ran 484 pages"
At Creditflux’s Credit Dimensions event, JP Morgan’s Zaheen Mir argues that CSOs are simpler to understand than CLOs

Being fully invested can have a greater impact on IRRs than avoiding 2% defaults annually
The IRR differential can be as much as 3.3% for a fully invested CLO versus one that maintains a 5% cash balance

They said it: "We all suffer from the world views of millennials"
Headhunter Dale Shorey tells attendees at the Creditflux CLO Symposium about the difficulties of recruiting at the junior level

Spotlighting the original originator
Five years ago in Creditflux, we reported on the very first CLO originator fund being launched: Blackstone/GSO Corporate Funding.

Points up front: CLO awards banter
The Creditflux Manager Awards have a history of springing surprises. This year we had journalist and TV presenter Gavin Esler host the awards dinner and regale the audience with a Dolly Parton gag (the less said about that, the better).

Points up front: It’s getting hot in here
The role that journalists play in reporting on the CLO industry has been in the spotlight this year, with the mainstream press guilty of resorting to hyperbolic statements and fear-mongering. So it was a surprise to learn that these views were being given a public platform at IMN’s CLO conference last month on a panel titled Addressing the Headlines. 

They said it: "Credit risk at that rating is basically non-existent"
Credit risk at that rating is basically non-existent

Points up front: An unethical CLO? Can’t be right, can it?
On 1 April, our new writer Faro Ipoll posted a report on Fetid Brook Capital’s plans for a CLO backed by unethical loans — counter to the trend of environmental, social and governance-friendly CLOs.

Past Returns: Repacking in land of the rising sun
Five years ago in Creditflux, we reported that Bank of Tokyo Mitsubishi UFJ was embarking on a strategy of buying repackaged CLO triple A notes denominated in Japanese yen

We are yet to find a mass-media article that devotes attention to the potential merits of CLOs
Far too many recent mass-media articles critical of the CLO market are heavy on the hyperbole and light on the facts, writes our columnist and Eagle Point founder Thomas Majewski

Points up front: “I always think of myself as Bruce Lee when I’m investing in CLO equity”
An analytical mind, a strong network of industry contacts and an eye for value are vital for a competent CLO equity investor. But don’t forget the one-inch punch

Selling at the time of the default or downgrade can often be the worst value decision for the CLO
CLOs don’t have to be forced sellers during distress cycles: skilled CLO managers and well-structured indentures can give optimal recoveries, says our columnist Thomas Majewski

They said it: “I’ve run the numbers and it looks more like a 3% IRR”
A CLO modelling professional tells Creditflux that European CLO model portfolios don’t look realistic

Points up front: structuring is in his blood
Very few people can claim they were born to structure CLOs, but perhaps GreensLedge’s new recruit Peter Melichar is the exception

Points up front: clickbait headlines? Us?
Last month ABS specialist TwentyFour Asset Management wrote a blog titled, “The next crisis will begin with... clickbait headlines”. He's not referring to us, surely?

The perception of liquidity is often not the same as the reality
Investec Asset Management's Jeff Boswell takes our credit quiz and discusses liquidity in Europe, the former "darling of the European debt market" Vivarte and the Matrix

Past returns: secret CLO market
Five years ago in Creditflux, we reported on the emergence of an inter-dealer market for CLOs

Past returns: Atlantic crossing
Five years ago in Creditflux we reported on Axa Investment Managers planning its debut US CLO with a view to becoming a global CLO manager. Today, US managers are prioritising the build-out of European CLO platforms

Points up front: BlueGreen OneTreeHill United - the CLO team
Inspired by Serhan Seçmen’s keynote address at Creditflux’s CLO Symposium in May, we’ve come up with a World XI of CLO managers

They said it: “Occam’s razor, the marshmallow test and the Pareto principle – what do they have in common?”
The simplest solution is often the best solution, delayed gratification and the 80/20 rule; these can all be used in the assessment of CLO manager performance

Past returns: KKR CLO was sign of things to come
Five years ago in Creditflux, we reported on KKR Credit pricing a US CLO that complied with European risk retention rules, in what was believed to be one of the first deals of its kind

We are not structured finance investors – we are corporate credit specialists
Fair Oaks' Miguel Ramos-Fuentenebro takes our credit quiz

They said it: regulators are using The Big Short as their frame of reference
The LMA’s Nicholas Voisey describes why it’s difficult to campaign for the European loan market

Points up front: traders are dedicated, no matter how hot it gets
When a fire alarm goes off, you should make your way to the nearest exit: unless you’re a trader