How many CLOs will be reset?
Tightening liability spreads aren’t just driving record new CLO issuance this year — they’re also triggering a wave of resets and refinancings in the US, especially for broadly syndicated CLOs

How many CLOs will be called this year?
Most CLOs are called when loan market prices are high. Distributions and equity NAV are also important, and they suggest that over 30 2017 and 2018 deals are now ripe for redemption

Ask the market where spreads are heading
Nothing brings the CLO market together like a good moan about the state of the arb. But according to our data, the arbitrage for new-issue US CLOs has remained in the same range for years. 

How worried should we be about defaults?
As defaults in the US loan market continue to stack up, we investigate the fallout for CLO investors by focusing on the OC tests of double B tranches across 10 years of US CLO vintages

What CLO investors really need to know
From the drivers of CLO performance to cashflow modelling, these are the seven things every CLO equity investor needs to know. This article is an extract from Dealscribe and CLO Research’s guide What CLO Equity Investors Need To Know

European CLOs win out against US deals
Last month, our analysis explored the performance of US CLOs that were previously reset. We found that they delivered higher distributions than deals which weren’t reset, with the exception of the 2017 and 2018 vintages (Creditflux September 2023 — Do resets help CLOs perform better?). This article expands that analysis to the European market, and compares the performance of US BSL and EU CLO equity tranches.

Do resets help CLOs perform better?
As the market for CLO resets opens, we look at the performance of deals that were previously reset, and find they soon deliver higher distributions than those deals that were not reset

Not every CLO can be a winner
The CLO industry has undeniably performed well enough to justify the plaudits it receives. But there will always be some unloved CLO tranches that slip into triple C territory

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  

Tracking down the credit industry’s original winners
All winning managers at the first Creditflux awards survived the crisis, under their own names – like BlackRock – or under new owners. But what happened to the people who collected the trophies?
 

Synthetic CDOs seek to follow CLOs
Growing issuance, interest in longer maturities and the emergence of a secondary market are encouraging dealers to believe that bespokes are on the road to acceptance. By Sayed Kadiri

Who predicted $145 billion of issuance?
That went better than expected: US risk retention came in, and $145 billion of global new issuance later, it’s clear that CLOs aren’t disappearing. By Tanvi Gupta and Sam Robinson

Investing ethically is worth it
Managers could see less volatile returns as a result of their increasing adoption of ESG-friendly portfolios; meanwhile direct lending is spreading across Europe

Heavy equipment suppliers: slowly crawling out of the mud
There are tentative signs that heavy equipment manufacturers are finally pulling themselves out of the mire

Healthcare providers: Heading for the emergency room
Donald Trump’s pledge to scrap the Affordable Care Act has hit a big high yield sector hard

CLO refis take centre stage
The third quarter CLO league tables cover a period in which issuance has been increasing while the total size of the market has fallen

A quarter of living dangerously
After a desperate start to 2016, CLO issuance recovered in March as loan prices rallied – but collateral values are still deteriorating

Hey, $125 billion isn’t bad
Despite generally gloomy sentiment about the market, 2015 was second only to 2014 for global full-year CLO issuance

Yankee loan documentation: Lost in the mid-Atlantic
When European borrowers travel to the US, their intercreditor agreements can lose much in translation

Surging volumes bring new players into credit options
As data from the DTCC shows, the credit options market is blossoming, making it one of the most liquid parts of the credit trading business

Holding course for a record year
Following a record first quarter, CLO issuance was steady enough in Q2 that the year's overall total should equal or exceed 2014 volumes

Citi stays top as CLO volumes explode
2014 was a year of superlatives for the CLO market. Our analysis shows which arrangers, managers and service providers were most successful

Europeans add twist to US recipe
A simple direct lending recipe born in the US is now being given a European flavour as unitranches grow in popularity among direct lenders and borrowers

Fertiliser production: Caught in a bleak midwinter
Fertiliser makers have invested to prepare for growth – but the outlook is wintry and their cash is dwindling.

European direct lenders strike €25 million sweet spot
Many new entrants to the European direct lending market are finding that they can put assets to work by making loans in the €20 million to €30 million range