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13 results found Showing page 1 of 1

  • Question your assumptions
    Valuing CLO paper is complicated, and loan prepayments are one of the trickiest parts. When pricing a new issue CLO, the market generally assumes that 15-20% of loans will prepay their principal annually. This prepayment rate is important because it essentially determines the pace at which a CLO’s rated debt is paid off after the reinvestment period, when the CLO pays down its own principal.

    2 years ago

  • Fund performance
    Good month for CLO funds sees six in top 10 as Axiom sets pace

    2 years ago

  • Rope-a-dope brings knock-out returns
    Post-pandemic US and European CLOs delivered mid-teen equity returns in 2022, despite a barrage of weak macroeconomic news and what could have been a heavyweight Libor mismatch  

    2 years ago

  • I’ll see your 2020 and raise you 2021
    Discounted loans, Libor floors and bond flexibility helped make 2021 an even better year for CLO returns than 2020, as US CLOs distributed 15.54% and European CLOs paid 13.93% annualised

    3 years ago

  • CLO managers show respect to their elders
    Alongside lucrative new issues, managers also make time for refinancing and resetting old deals. Our data shows that, in 2021, mid-sized firms were the most effective at this balancing act

    3 years ago

  • Refi deluge casts shadow on b-wics

    Refis and resets are cutting CLO lifespans short, which means there is less need to sell in the secondary market. Still, there are relative value opportunities in IG bonds and equity tranches

    3 years ago

  • Still plenty more fish in the triple C

    US CLO triple C buckets are lighter than a year ago thanks to the wave of loan upgrades from Moody’s and S&P. But 48% of downgraded paper is yet to return to a coveted single B rating

    3 years ago

  • At least 2020 wasn’t dreadful for CLOs
    Last year’s downturn was another in which CLOs survived and in many cases thrived as active management and Libor floors helped managers deliver 13%-plus returns to equity

    4 years ago

  • Managers weigh up matters of principal
    CLO managers that were able to avoid OC traps made double-digit equity distributions in Q2, despite the headwinds. But these firms tended not to be among those that built the most par

    5 years ago

  • Europe’s newcomers find ways to stand out
    Last year’s new European CLO managers needed to provide something different for investors. In general, they’ve succeeded, with Capital Four having one of the smallest overlap figures in our data

    5 years ago

  • Credit pickers need luck to avoid OC trap
    We know what you’re thinking: is my CLO failing its OC test? The truth is, in all this volatility, it can be hard to keep track, unless your deal has high quality liquid loans

     

    5 years ago

  • Managers pick spots on CLO curve
    As refi volumes slowed through 2017, the term curve for CLOs steepened, leading managers to vary their deal tenors as they sought to hit the evolving sweet spot.

    7 years ago

  • Investors prefer direct lending to CLOs
    For the first time in the history of Creditflux’s credit allocator survey, investors have voted direct lending the best investment in credit. CLOs came joint second. By Michelle D’souza

    7 years ago

13 results found Showing page 1 of 1

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