Some BDCs find early success in race to bring down redemption requests
EXCLUSIVE: Most perpetual nontraded BDCs, however, are expected to see elevated redemption activity throughout 2026 and possibly into 2027 

News in brief
Top stories on creditflux.com: from First Trust’s CLO start to Apollo’s next generation

Oaktree’s deputy CIO of strategic credit says we’re in the early innings of private credit dislocation
Oaktree has been very opportunistic about deployment in cycles or dislocations, which the market may be in the early stages of, says Milwood Hobbs, Jr., deputy chief investment officer of the firm’s strategic credit platform, on the latest episode of the Credit Exchange podcast with Lisa Lee

New York, Connecticut among systems pursuing alternative credit strategies
NYSCRF allocates USD 450m to net-lease, GP stakes funds; San Diego, San Mateo pensions commit to asset-based finance funds

Indiana, New York systems pursue diversification with large opportunistic credit commitments
INPRS commits USD 1.6bn, NYSTRS USD 450m to opportunistic/specialty funds; Ventura County pension plans USD 220m in private credit commitments

Oaktree prices tightest US CLO in a month
The manager’s latest new US BSL CLO priced at the market’s narrowest level since the end of March, issuing its triple As at SOFR plus 123bps

Oaktree prices US and European CLOs in single day

Oaktree priced two CLOs to close out last week – a new European issue titled Arbour CLO XVI via Citi, and a reset of a 2024-vintage US BSL transaction through SMBC Nikko

Oaktree’s semi-liquid private credit fund covers all exit requests totaling 8.5%
The fund, which leaned on parent company Brookfield to cover the surge in redemption requests, also cut dividends

AI’s potential may be underestimated despite investing concerns – Howard Marks
AI’s potential is likely underestimated, but worries about job losses and an AI investment bubble persist, said Oaktree co-founder Howard Marks in a new memo

NYS system commits USD 500m as Illinois plans private credit RFP
NYSCRF allocates USD 500m to BlackRock, Ares and Pearl Diver; Boston, San Joaquin pensions also reveal recent commitments; Illinois police pension plans private credit search in June

Oaktree collaborates with parent Brookfield on ABF product for US individuals
The new product launched with USD 400m in committed capital and will give wealthy US individual investors access to Oaktree’s asset-backed finance expertise

Oaktree Capital’s Robert O’Leary on threats, opportunities in global credit
Credit secondaries set for continued growth as financial sponsors seek liquidity solutions; high-yield bonds seen as defensible, while opportunistic strategies may benefit from distress

Oaktree raises USD 2.35bn for insurer-friendly evergreen direct lending fund
The fund, designed for institutional investors, will follow a senior direct lending strategy and focus on the middle market

Brookfield to buy remaining Oaktree stake, becoming full owner
The USD 3bn transaction will give Brookfield full ownership of the top-40-ranked CLO manager

Apollo, Oaktree and Searchlight among funds sitting on USS debt as company doesn’t make payment
EXCLUSIVE from Debtwire: Forbearance agreement reached between USS and creditors, as USS struggles financially despite recent LME efforts

Oaktree hires former BlackRock MD for private debt sourcing
The former BlackRock managing director joins to source private debt deals in North America

Brookfield raises USD 16bn for credit, plans asset-based finance strategy
The firm is also planning to hold a first close for its infrastructure mezzanine debt fund

17Capital raises USD 5.5bn for NAV lending to private funds
The alternative credit firm claims its 17Capital Strategic Lending Fund 6 is the largest NAV lending fund seen in the market to date

Investors still pivoting to fixed income – Oaktree’s Wayne Dahl
Both large individual and institutional investors are continuing to rotate their portfolios into fixed income, says the co-portfolio manager of global credit and global credit investment grade strategies at Oaktree Capital Management, on the latest edition of the ‘Credit Exchange’ podcast with Lisa Lee

Oaktree wraps up bumper week with same-day US new issue and reset
The two deals were together valued at USD 771m, taking the manager's issuance for last week to around USD 1.2bn in total

Oaktree resets short-dated deal from 2022
The repricing of Oaktree CLO 2022-1 renewed the US BSL deal on a 2Y/5Y timetable

Oaktree prices US BSL deal with three triple B tranches
The spread at the top of the stack was 18bps inside that of the manager’s last new issue in mid-April

Decline in loan supply from tariff uncertainty poses CLO underwriting risks—Oaktree
Oaktree warns a growing supply-demand imbalance for US leveraged loans could pressure CLO managers to pick up low quality paper

Oaktree prints US reset and new issue on successive days
Both deals priced their triple A paper at SOFR plus 150bps

Private credit managers consider smaller fund targets
ANALYSIS: Some private credit managers are considering a smaller fundraise, bucking the convention of always aiming for bigger funds