S&P revises US CLO stress tests to include recession-based scenarios
Standard and Poor’s has published revised stress test scenarios on the US broadly syndicated loan CLO market in light of increasingly negative market sentiment

Carlyle names co-founder as interim CEO as Lee steps down
Carlyle Group’s chief executive officer Kewsong Lee has stepped down from this role and the board of directors, effective immediately

Short duration CLOs are putting reset risk in the post: Barclays
The CLO market’s recent trend of shorter duration issuance could be setting up a problem for managers down the line that will impact their equity returns, Barclays has warned

"Extreme volatility can push BSL yields close to mid market levels, although that trade never lasts"
The two segments of the loan market are on different paths as mid-market volumes rise

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

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
   

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

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.

We can cope with downgrades again

CLO market mood sours amid bitter economic outlook

US manager launches CLO and loan funds with $150 million seed capital
A Dallas-headquartered manager has secured $150 million in anchor commitments for a new US CLO fund and leveraged loan fund

Credit Rendezvous: Investors try to avoid suplex city as recession and inflation reform tag-team
Credit investors getting ready to lock up against that familiar 1970s pairing of inflation and recession. But the hard-hitting tag team has picked up some new moves, causing floating rate outperformance to give way to underperformance; synthetic credit to outperform cash; and CLO terms curves to reshape into barely recognisable positions

Euro loans with FX hedging offer better value than US: Barclays
The big underperformance of European loans in June has left them looking cheap versus those in the US – but FX hedging and a nuanced selection process are advisable for investors looking to take advantage of that

SocGen promotes credit head in New York
Societe Generale has appointed a 20-year veteran of the bank to head of fixed income for the Americas

"The CLO that started the wave of prints and sprints paid near 20bp more than the market average"
It is possible to hit a home run with a print and sprint CLO, but execution is difficult  

FinDox steps in on climate disclosure reporting for CLOs
FinDox has become involved in reporting on carbon data for ­climate-related financial disclosure regulations, having been mandated by leading CLO managers to source relevant ESG key performance indicators

HSBC AM's responsible investing head resigns with view to creating "new asset class"
HSBC Asset Management’s global head of responsible investing has resigned after been suspended by the firm. This followed him delivering a conference speech in May in which he downplayed the impact of climate change on financial markets

Beneath the triple C: ebbs and flows leave triple C levels at a temporary stasis
Following a rising tide of downgrades in May the loan market stabilised somewhat in June, with seven issuers held by CLOs downgraded to triple C and a counter-swell of five names upgraded to single B.

Fund performance: Rocky May piles on the misery for credit hedge funds
Negative fund performance soared in May

Credit hedge funds (July 2022)
Credit hedge fund returns

Ucits at a glance: LBBW shines as Ucits take a turn for the worse
Ucits fund returns