"The reset market is open, but it doesn’t always make sense to extend the life of a CLO"
Strong secondary loan prices are making CLO liquidations a compelling option  

"Rules require 5% risk retention, but for first loss CRS that is not enough"
PGGM's Mascha Canio takes our credit quiz 

Past returns: Ares constructs private CLO
In Creditflux 10 years ago we reported on Ares Management putting together a quasi-CLO in a bilateral transaction involving senior debt investor Sumitomo Mitsui Banking Corporation

Points up front: CLO valuation buzz - to infinity and beyond
Last month it emerged that Eldridge Industries was exploring the possibility of selling part of its majority stake in global CLO manager CBAM

"This is the CLO market’s time to shine and prove it deserves to be a mainstream asset class"
The CLO market shouldn’t fear inflation — in fact, 2022 could be a very good year indeed

"We again have to flag up information in CLO marketing pitches that can mislead investors"
Cash-on-cash returns, default records and leverage statistics don’t always give CLO investors the full picture  

Past returns: KKR’s unusual CLO liquidation
Five years ago in Creditflux, we reported that junior debt investors in a KKR-managed European CLO voted to alter the deal’s documentation so they could drive a liquidation of the legacy deal, such that they would receive roughly 92% of par

They said it: "The tone may have been too positive"
CLO market participants have been guilty of being overly bullish

Points up front: Diverse? More like reverse
Diverse leadership structures at asset management firms are known to attract institutional investors. But we hear that one CLO manager has taken advantage of this by presenting itself as a diverse organisation

"In 2022, being slow will not be such a bad thing"
St David losing its place as the UK’s smallest city would be a travesty. Replacing Libor might be worse

Past returns: Insurers weigh CLO barbell trade to fight Solvency II
Five years ago in Creditflux we reported that insurers in Europe were putting on a CLO barbell trade in reaction to Solvency II regulations which came into effect in January 2016

They said it: "Remove call option from CLO assets and liabilities"
A CLO investor, commenting in Creditflux’s CLO Census, comes up with a drastic way of making CLO cashflows a whole lot easier to model

"CLO equity investors have long accepted basis risk… but an off-market adjustment does not work"
The 26bp adjustment is disrupting the transition away from Libor — but market forces will prevail

Everyone’s ramping

Past returns: Black Diamond riles investors
10 years ago in Creditflux, we reported on lawsuits against Black Diamond Capital Management after it tried to make $45 million of trades in Black Diamond CLO 2005-1 using cash the deal hadn’t yet received

They said it: "Oh, hell no!"
PineBridge Investment portfolio manager Laila Kollmorgen tells the audience at Creditflux’s CLO Symposium that she is unequivocally against increasing triple C limits from 7.5%

Points up front: CLO award-winners love bowing out at the top
Reaching the summit of their profession gives CLO officials the compulsion to move on to pastures new, as evidenced by the Creditflux Manager Awards

Points up front: Risk retention gets less than 5% of airtime
In a sign of how buoyant the CLO market is, risk retention was hardly mentioned at Creditflux’s CLO Symposium. Milbank partner John Goldfinch gave a self-deprecating assessment... 

"Purchasing IG CLO debt was a key driver of success for 1.0 CLOs"
Longer reinvestment periods, the ability to buy IG tranches and improved loan settlements would improve CLOs

"I’m passionate about broader representation within investment teams"
CIP's Leila Donnachy takes our credit quiz 

"If you sat still on a large portfolio of 2019 and 2020 CLOs, it may have shrunk by more than 25%"

"The CLO industry can be a little clubby… it feels like there are few advocates"
Pension Danmark's David Altenhofen taks our credit quiz