Credit funds at a glance (July 2021)
A round up of fundraising and people moves in credit

Eagle Point hires trader for non-CLO assets as it eyes growth in corporate credit
Eagle Point Credit Management is growing its non-CLO business, with the firm hiring a head corporate trader responsible for trading high yield, BDC debt as well as equity, reits and other securities

"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 bask in 'golden period' as industry approaches $1 trillion market cap
The economic rebound following the reopening US economy has created a 'golden period' for the CLO market, market participants say

CLOs come up smelling of roses
The coronavirus crisis could have cut back 10 years of CLO market progress, but investors’ foresight, trading chops and flexibility meant many saw their strategies blossom during 2020  

"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

Credit funds at a glance (May 2021)
A round up of fundraising and people moves in credit 

Eagle Point hires official to focus on CLO debt investments
Eagle Point Credit Management has added to its CLO team by hiring a former MKP official 

"CLO managers who struck the right balance in 2020 are more easily able to reset their deals"
CLO managers were re-evaluated during the pandemic, and outperformers can expect to see benefits this year

LP round-up: $2.6 billion flows into 26 credit managers
A stuck ship in the Suez Canal may have prevented others from getting through one of the world's busiest waterways in March, but allocations to credit funds were much more free flowing as investors poured over $2.6 billion into the hands of credit managers

Eagle Point diversifies from CLOs as it wins $180 million for BDC lending strategy
A US public pension has earmarked $60 million for Eagle Point's fund and a further $120 million for a separate managed account

CLO naysayers have made arb and cov-lite into dirty words — that should now change
Recent performance has shown that cov-lite loans and challenging arb don’t spell doom for CLOs 

Eagle Point hires business development director from CQS
Eagle Point Credit Management has hired a director of business developement

The tide has turned… the solution for investors is to move into floating rate loans
2020 was the year of fixed-rate bonds, but treasury curves are steepening and demand for loans is heating up

Eagle Point makes large investment in rival's CLO fund
Eagle Point Credit Management has made a large investment in the preferred stock in a competitor's publicly traded CLO fund

2020 wrap: CLO funds bloom despite rocky ground
2020 was a busy year for CLO fundraising, with Creditflux recording at least 30 funds that launched over the 12 months to invest across the CLO capital structure

Perhaps 2021 will be the first year of the next expansion
For 2021, our columnist is focused on Libor transitions, CLO flexibility and loan managers fighting among themselves

Eagle Point bulks up on CLO equity
Eagle Point Credit Company deployed $35.1 million of its capital into CLO equity investments in the third quarter, buying $8.4 million in the secondary market and the remainder in primary, while selling just $4.8 million

The cost — a few basis points — is modest compared to the potency of bond buckets
If CLOs had bond buckets when Delta Air Lines issued debt, a manager could have bought the bond then rotated into the loan

CLO collateral managers who are able to update their documents could gain warf advantage
Moody’s is reviewing its approach to warf. Changes could boost managers’ ability to trade

Faith in structures has been rewarded
CLOs have been resilient against covid-19 fallout, said speakers at Creditflux’s CLO Symposium last month. But there’s always room to improve and 3.0 deals may add ESG and bullet tranches

The length of a CLO’s reinvestment period has no substantive effect on its resilience to defaults
Three-year reinvestment CLOs are the norm, but debt investors should be locking in historically wide spreads for longer

Eagle Point targets $100 million with CLO fund launch
Eagle Point is set to launch another CLO-focused fund this summer, with the Greenwich-based manager on the fundraising trail for EP CLO Opportunities Fund II

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

Around 20% of the US CLO market has traded this year — not bad for an asset class that is seen as illiquid
CLOs can trade cheaply and directly, which helps keep volumes steady even in a crisis