What matters is what you do with it
CLO managers yearn for flexibility so they can take advantage when credit sells off. But it isn’t enough on its own: triple C-flex CLOs saw portfolios erode this year, while CBOs outperformed

Arb work pays off
With day-one arbitrage alone delivering projected CLO cash-on-cash returns of 20-25%, 2021 may have been the best year ever for equity investors — at least until CLO spreads began to widen  

These CLO docs could be better
It seems there’s not much to worry about if you’re in the CLO market. In Creditflux’s CLO Census, voters said docs should follow a template as Jefferies, AGL and Hayfin emerge as rising stars

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

 

Finding horizontal and vertical angles
2017 CLOs where managers hold a vertical strip have higher spread portfolios and higher leverage than those with a horizontal risk retention investment. By Tanvi Gupta

Petrobras: In deep water – and sinking deeper
It has $135 billion in debt and its credit standing rests on a signature from its auditor. Petrobras is a credit for brave investors

The growing Swiss network
Defunct investment banks such as Lehman Brothers are not the only ones with a healthy diaspora of credit traders. UBS has a wide network of ex-colleagues.

Bursting into life
Creditflux Manager Awards data shows that European CLOs have emerged from the darkness of 2011 and now have value for equity invest

Credit pays – in the long run
Bac Van Luu and Peiyi Yu crunch data going back to 1926 to figure out whether long term investors, such as pension funds, benefit from being overweight credit

Casting doubt on steel’s recovery
Steel production is rising from last year’s lows. But demand is due to re-stocking rather than
a real turnaround in end-users’ markets – and new risks are looming.

CLO trading strategies revealed
CLO trading strategies revealed