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

CLOs at a glance (July 2021)
A listing of CLOs that have priced in the last month

"Pain is on the way: spreads are too tight, while compression and carry are done. But what if it's not?"
Welshcake reminds us that mid-cycle portfolio management is a funny old game  

Credit index tranche trading on the rise amid low dispersion
At its halfway point, 2021 is shaping up as another big year for credit index tranche trading, with new investors having entered the market and dealers projecting full-year volume could vie with 2020’s record of recent times.

CLO demand drives loan outperformance versus bonds
Leveraged loans could be set for their strongest run of outperformance over high yield bonds since 2017, say investors and strategists ­— if the CLO engine and an influx of money to funds continues to drive flows

Credit grind pushes back volatility bets
With recent weeks having all-but crushed volatility from the market, uncertainty about the timing of future risk triggers is leading credit options traders to spurn traditional horizons to focus on longer-dated expiries

CLO investors don Euribor caps to hedge rising rates
Euribor-capped tranches have made a comeback in European CLOs, with AIG and PGIM understood to be behind them. Sources say PGIM has been investing in triple A-rated tranches, while AIG has taken on double-A rated tranches

CLO market explores move out of Cayman amid EU clampdown
CLO market participants are exploring moving their special purpose vehicles out of the Cayman Islands following amended European Union rules that could designate the territory as a blacklisted tax haven

UK government seeks views on securitisation regulation
The UK government has issued a ‘call for evidence’ for the securitisation regulation, the main law that regulates securitisation activities in the UK. Responses to this will inform the government’s review of the regulation, in a report that will be presented to parliament by 1 January

Blackstone opts for another four-year reinvestment Euro CLO in upcoming reset
Blackstone has followed a four-year new issue with plans for a four-year European CLO reset 

Deutsche Bank European CLO researcher joins Orchard as portfolio manager
Orchard Global Asset Management has hired from Deutsche Bank’s European ABS research team in a bid to grow its CLO investment business.

Credit fundraising: managers take care of infrastructure with new partnerships
Credit managers were busy launching new partnerships to support growth in infrastructure and CLOs. There were 13 announcements in the month paving the way for upcoming funds, platforms, and joint ventures

Ex-CVC official to make CLO comeback at new firm after mandating Barclays
A recently launched credit manager is moving into European CLO management after hiring Barclays to arrange its debut, which could price in the fourth quarter.

Credit slumbers in departure lounge as airline equities take off
Credit and equity markets have been in a balancing act on Tuesday between the positive and negative implications of surging oil prices and Germany opting to relax travel restrictions

Standard Chartered takes on hybrid placement agent/investor role on European CLOs
Standard Chartered has made a breakthrough in European CLOs by serving as co-placement agent on deals

MV collects €526 million for second senior direct lending fund
MV Credit has held a final close on its second senior direct lending fund, MV Senior II

French food producer gets cold shoulder following bond issue
Picard, the French frozen foods producer, is one of the biggest movers in the European high yield market on Monday, after investors showed little warmth for its new bond issue in the secondary market

Blackstone, Chenavari, CIFC and Five Arrows add €2 billion to weekly Euro CLO issuance
Nearly €2 billion of European CLO issuance priced this week, with Blackstone, Chenavari, CIFC and Five Arrows adding to Napier Park’s reset earlier in the week

Vontobel takes full ownership of TwentyFour after bringing forward acquisition plan
Vontobel says that it owns all of TwentyFour Asset Management after fast-tracking a plan to top up its previous 60% stake in the structured credit fund manager

All eyes on NFP as credit seeks exit from 'no man's land'
Credit markets look to be ending wider on the week but, with focus mainly on today's US non-farm payroll numbers, the lack of movement in early trading could give way to a stronger directional play ahead of the long US weekend

Incus targets €500 million for fourth SME credit fund
The Madrid-headquartered firm has launched its fourth asset-backed European credit fund, Incus European Credit Fund IV, with a €500 million target and €650 million hard cap

CLO pipeline: Man GLG resurfaces from six-year absence as deals exiting call-lock fill pipeline
CLO spreads have leaked out in recent weeks but deal economics are still favourable, encouraging managers to come back to the primary market for the first time this year

Bridgepoint signals IPO and eyes real asset acquisitions
Bridgepoint unveiled its intention to go public on Tuesday, with the manager planning to issue £300 million worth of ordinary shares listed on the London Stock Exchange

KKR opens Stockholm office
KKR has expanded its presence in the Nordics with an office in Stockholm

Napier Park resets debut European CLO
Napier Park Global Capital has reset its inaugural European CLO, Henley CLO I via Deutsche Bank