Refine Search
Article Categories
Strategy Tags
- Direct lending (14)
- Emerging markets (13)
- High yield bonds (45)
- Investment grade credit (44)
- Structured credit (26)
- CLO (31)
- Distressed debt (14)
- Leveraged loans (23)
- Marketplace lending (7)
- Synthetic/SRT (remove)
- ABL Financing (13)
Geography Tags
-
Technicals support IG while investors hunt for rising stars
4 years ago
Investment grade credit spreads have been stubbornly tight for the past six-months, but investors see positive technical factors that make lower-rated bonds appealing -
"Watch the IG credit curve — we may see steepening of IG 5s10s and flattening of 10s30s"
4 years ago
Stimulus measures are supporting short tenors, and pension demand for 30-year paper is strong, so 10-year IG credit may have few buyers -
It's all relative: CLOs march tighter as macro traders open positive CDS skews
4 years ago
Credit default swaps are back near where they started the year after giving up their early-February gains amid a rise in government bonds. CDS curves steepened over the past month and macro hedging has left indices trading with positive skews. But CLOs paint a calmer picture in which spreads have inched tighter -
It's all relative: CLO spreads explore record tights as credit indices hit impasse
4 years ago
CLO spreads are grinding to ever tighter levels, despite a flattish week for credit in which corporate credit indices have ended up more or less unchanged -
It's all relative: CLOs are lagging no more, as Carlyle deal drags market tighter
4 years ago
“CLOs are lagging” has been a much repeated refrain over the last nine months. But Carlyle Group has this week produced a US CLO that has dragged spreads to their tightest point in three years so that, rather than comparing CLOs to pre-covid levels, they should be assessed against early 2018 -
Early 2021 moves open up CLO and credit curve dislocations
4 years ago
Fund managers are keeping a close watch on credit curves as sharp moves since the start of December have forced relative value to shift between corporate bonds, CDS, CLOs and loans. This has put CDS curve steepeners in focus but, conversely, CLO flattening appears likely. -
It's all relative: senior CLO tranches tighten 18% in Europe as CDS indices sit out rally
The corporate credit rally in January is notable because some assets tightened to levels not seen in over a decade (loans), others rallied albeit with a lag (CLOs) and the most liquid stream of credit (CDS indices) defied moves in other asset classes to widen
-
US looks for stronger open after sell off
4 years ago
US credit is opening slightly stronger on Thursday, after its sharp Wednesday rout, prompted by Federal Reserve messaging, carried over forcefully into Asian and European markets -
Credit Rendezvous: heading for homes
4 years ago
Fund managers in structured credit, real assets and distressed are bullish on the prospects for residential housing in 2021. Elsewhere, niche royalty-based strategies are in favour and although a CLO repricing wave is expected, it may not be easy to execute resets. For more, read our 13-page quarterly report on credit. -
Convexity pushes high yield bond basis to the forefront
4 years ago
Compression had become the watchword of the market as Creditflux went to press, providing justification for high yield versus investment grade macro plays, wide-end long positioning and selective tight-end shorts. But the more important driver, say some relative value investors, was convexity -
Zombies demand brain work from tranche traders
4 years ago
Outperformance of junior tranches and underperformance of senior was the big theme in CDS index tranches going into December. But the picture began to change as Creditflux went to press -
Little room to move in IG’s vice-like grip
4 years ago
The absolute tightness of credit has left investment grade specialists a tough challenge to find value in the coming year, with neither scope for spread improvement nor encouragement to go short -
It's all relative: Euro CLO mezz rallies to follow month-long IG/HY compression
4 years ago
European credit suffered this week with Brexit talks between the UK and the EU dragging on and both sides conceding that a trade deal is unlikely to be reached by Sunday’s deadline. But European CLO tranches have held up reasonably well with mezzanine spreads tightening by almost 13% in December -
Europe leads corporate credit rally, but US outperforms in CLOs
4 years ago
iTraxx Crossover has been the CDS market's outperformer this week, tightening over 30 basis points, or 11.4%, to trade at 235bp today. But in the CLO market, US deals have come out on top thanks to a BlackRock CLO that priced its double Bs at some of the tightest levels this year -
Compression plays out as HY and European CLO double Bs outperform
4 years ago
Investment grade and high yield credit spreads have tightened in sync with each other this week, but CDS and CLOs alike underline that the big theme over the past month has been compression between investment grade and high yield -
CDS indices edge wider and positive skew opens as Pershing Square puts on new hedge
4 years ago
Credit indices have widened a touch this week but they’re back in focus with reports that Pershing Square Capital Management, led by Bill Ackman, has this week used CDS indices to hedge parts of its equity portfolio -
Credit rally rolls on as indices approach one-month tights
4 years ago
CDS indices are approaching their mid-October tights as reality seeps in of a divided US government and, consequently, little chance of dramatic corporate tax increases. Yesterday, iTraxx Main led the way, tightening 5.3%, followed by CDX NA HY and CDX IG (both 4.5%) and iTraxx Crossover (2.8%) -
US credit shakes off early jitters as CDX IG tightens 6.9%
4 years ago
Credit spreads have reversed course yet again to join the rally in equities today. The Dow Jones Industrial Average up 2.5% today and credit is following with investment grade indices leading the way -
Indices retrace wider as contested election scenario looms
4 years ago
Credit is moving wider this morning as a contested US presidential election looms. This comes as incumbent Donald Trump threatened to go to the US Supreme Court in the early hours of this morning, citing election fraud and calling to stop votes being counted -
Single names join rally as positive skews persist in Europe
4 years ago
Single name CDS has joined the rally with European credit moving tighter this morning to continue the momentum from Monday. iTraxx Main is trading 2.1 basis tighter at 61.1bp today, according to IHS Markit, having shed 1.9bp yesterday. Similarly, iTraxx Crossover at 348.2bp has tightened 9.7bp today after tightening 9.1bp yesterday -
Credit spreads wind back to February to bring shorts into focus
4 years ago
The credit rally since April has opened up an opportunity to go short credit, say fund managers, with spreads back to where they were in late February -
Fallen angels push off-the-run index 25bp wide of CDX IG
4 years ago
A gap of over 25 basis points has formed between US investment grade CDX IG and its recently off-the-run predecessor series 34. At Credit Dimensions, Creditflux’s synthetic credit event, panellists highlighted a major shift in composition between index series that has opened up relative value plays between them -
Rampant technicals push cash and CDS in different directions
4 years ago
Central bank interventions, primary market issuance and high yield defaults have conspired to create major distortions in credit performance, which sources say are ripe for opportunistic trading. -
US and Europe diverge on credit spreads and more
5 years ago
US and European corporate credit performance has diverged since cities went into lockdown in March, with Europe tending to do better. But the CLO market gives a different picture, with 17 US transactions pricing to four in Europe since 1 April, and with tighter investment grade spreads -
CLO investors should be able to see live secondary trading levels
5 years ago
Olga Chernova of Sancus Capital takes our credit quiz
Want all the latest news, comment, analysis and data?