Lenders fume over Avaya ebitda miss weeks after issuing loans
Avaya’s lenders are considering legal options after the company slashed its ebitda projections just a few weeks after issuing a $350 million term loan paying Sofr plus 1,000 basis points

HPS launches sixth direct lending fund
The firm's previous fund in the series closed in September with over $15 billion of investable capital

UBS says modelling suggests upcoming recession won’t bite
Likely global recession scenarios look mild according to strategists at UBS, who have run four models.

Credit funds at a glance (August 2022)
A round up of fundraising and people moves in credit
   

CLOs at a glance (August 2022)
A listing of CLOs that have priced in the last month

Ucits at a glance: Ucits see red in a tough June for returns
June marked an exceptionally tough month for Ucits funds, as none of those listed in the Creditflux database made it into the black

Credit hedge funds (August 2022)
Credit hedge fund returns  

Fund performance: Select funds shine in dreary June for credit hedge funds
Credit funds suffered through June, as only 8% of listed funds reached the black. This made June the fourth month in a row in which negative returns increased

Pattern of loan sell-off implies widespread uncertainty
A quirk to the June loan dip was that industries and rating bands sold off in parallel

CLO equity arb gets squeezed but investors eye recovery swing
The CLO equity arbitrage endured a wildly volatile first half of 2022, but observers say the time could be right to buy into the asset class

Euro risk retention becomes must-have feature for US CLOs
For the past four years, risk retention-compliant US CLOs have been viewed as a luxury. But today issuers see a clear advantage to putting skin in the game

They said it: "We’ve been treated very well by our warehouse providers..."
A large CLO issuer gives its take on CLO warehouses 

CLO arrangers race to place as bid countdown begins
US CLO arrangers are scrambling to print deals as investors across the capital stack place time limits on their bids. In particular, say market sources, some junior debt investors are stipulating their bids are only good for 24 hours

CFOs stage comeback as fundraising tool for managers
Collateralised fund obligations are coming back into fashion, with Churchill Asset Management the latest firm to launch such an offering after announcing a $700 million deal last month.

Investors disagree on impact of NAIC’s CLO modelling proposal
A split is forming among insurance-backed CLO investors, with some not concerned by the National Association of Insurance Commissioners’ CLO proposals

Wide spreads lead managers to plump up CLO par subs
Widening CLO spreads are causing rating agencies and investors to push for additional par subordination in CLO tranches, sources say. CLO funding costs have risen above 300 basis points in Europe and above 275bp in the US

Making the grade: CLO managers move into IG bonds
CLO managers have been using the incredible volatility in credit markets this year to add an unfamiliar asset to their portfolios – investment grade bonds

We can cope with downgrades again

Balbec collects $1.5 billion for fifth mortgage and consumer loan fund
Balbec will invest through a new fund across residential, commercial, and consumer whole loan portfolios and across the performance spectrum including “assets subject to bankruptcy or other structured repayment plans"

Market rides out China-US fray with oil, rates and jobs back in focus
US and European credit markets are exhibiting a firmer tone on Wednesday, with investor focus having shifted from Taiwan concerns to Opec+ oil supply. But a looming Bank of England rate hike and US jobs data mean caution remains the watchword

Carlyle launches decarbonisation-linked financing initiative
Carlyle Group says its credit division has launched a decarbonisation-linked financing programme, having closed the first two loans under this initiative

Czech mate: Voya IM agrees to buy $5 billion US direct lender
Private markets and alternative capabilities have been a “strategic focus and growth driver” for Voya and the firm says its new direct lending team will “complement our leading fixed income platform and accelerate the expansion of our private and leveraged credit franchise across institutional, insurance and retail channels”

Green negative basis trades open up after GM issues bonds
There is an attractive entry point for ESG-minded credit investors to put on green negative basis trades, according to a research paper by Anthropocene    

JP Morgan AM names head of private credit secondaries
The firm says the hire reflects “significant demand for secondaries strategies from clients across the globe, reflecting the need for greater liquidity to take advantage of opportunities as private debt markets mature"

KKR reports $115 billion dry powder as it changes public markets business name
KKR reported strong deployment and dry powder figures but fee-related earnings came short of expectations