Past returns: Prophet’s early CLO redemption
In Creditflux five years ago, we reported that Prophet Capital, the control equity investor in Covenant Credit Partners CLO I, had driven liquidation of the deal

They said it: "The debtor’s [Highland’s] founder, James Dondero, created an elaborate web of approximately 2,000 business entities&qu
Highland’s unsecured creditors break down the company’s corporate structure

Points up front: Swapping bylines for a role on the buy side
Creditflux has specialised in CLO coverage for over a decade now and generally we’ve had a clear run at the market because few of our peers appreciate how the CLO machine works. The exception to that has been highly-respected Bloomberg journalist Sarah Husband

"Do not rush to set up a check-box approach with negative screening and start de-investing"
Instead of rushing through an ESG framework, asset managers need to adopt a long- and short-term approach

"Alongside larger private equity funds, loan volumes will continue to grow"
Spire's Phil Bennett-Britton takes our credit quiz

"In some ways, CLOs resemble a quirky, cottage industry more than a trillion-dollar market"
CLO volumes outstanding have passed $1 trillion, but index omission and private placements are holding us back

Past returns: Doing DIY CLOs
Five years ago we reported that CLO managers were considering self-arranged CLOs

They said it: "The mantra is doing good and doing well without sacrificing returns"
CarVal on its ESG line of CLOs

Points up front: Writing the book on CMVs
Former Canyon Partners CLO head Dominique Mielle has gone from poring over CLO documentation to writing a novel about her experiences in the credit industry

"I’ve been doing ESG for 27 years; I just didn’t know it"
Apollo's Joe Mornoey takes our credit quiz

"Spacs… what better buyer than someone with a short fuse who needs to get their capital working"
Since the beginning of 2020, more than $191 billion has been raised in spac (special purpose acquisition company) IPOs. This money has such a short fuse — get a deal done in 24 months or management loses the IPO costs it covered — and there has been so much of it, that it has had an impact on the markets

Past returns: Mid market CLOs move into light
Ten years ago in Creditflux, we reported that S&P was reducing shadow ratings after it notified CLO managers it would not assign such ratings to companies with more than $499 million of outstanding debt

They said it: "A lot of value was lost due to CLO window dressing"
"A lot of value was lost due to CLO window dressing"

Points up front: CLO veteran earns OBE
We spotted a household name in the CLO business among those being feted in last month’s Queen’s birthday honours list — former Alcentra chief executive David Forbes-Nixon was awarded an OBE

Point's up front: To have and to hold
The bankruptcy of Highland Capital Management rumbles on. As the case turns messy, a judge has poetically suggested it is like a divorce between the company and its former chief executive officer James Dondero

"Pain is on the way: spreads are too tight, while compression and carry are done. But what if it's not?"
Welshcake reminds us that mid-cycle portfolio management is a funny old game  

"Technology won’t replace human judgement. In ESG a qualitative review is necessary"
The social aspect of ESG must be given sufficient weight in investment decisions  

They said it: "The board announces the discovery of a website purporting to represent Volta"
They said it 

Points up front: Waterway to name and brand your CLO
When taking over a CLO launched by another firm, CLO managers face a dilemma: how do you re-brand it so it’s clear it’s one of your CLOs, but not so much that it fudges your personal track record? Well, HPS Investment Partners has found a neat balance

Points up front: CLO Initiative For Change
Well done CIFC Asset Management and other counterparties to a new US CLO, which donated $145,000 to Black Girls Code

"How CLO managers optimise the value of reorg equity is one of the most important unasked questions"
Getting the most out of reorg equity could be the difference between a good CLO and a great one  

CLOs seem like Premier League members in the world of finance
The CLO industry is in a privileged position and can wield its power to do good  

They said it: "The CLO business continues to move forward... it is still going strong"
A spokesperson for Deutsche Bank says it is committed to US CLO new issues

"Why can’t loans and CLOs simply move to three-month treasury bills as our reference rate?"
Sofr may be touted as Libor’s natural replacement, but the best known rate in the world is also an option

"Three CLOs issued in 2021 have included triple C baskets of 20%"
Big triple C buckets helped mid market CLO issuers in 2020 and the trend is for even bigger allowances this year