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

Are we ready for another crisis?
Credit managers must brace themselves for stress in 2023, as rates rise and the number of poor performing assets increases. But most CLOs look well-placed and can rely on plump OC cushions 

I’ll see your 2020 and raise you 2021
Discounted loans, Libor floors and bond flexibility helped make 2021 an even better year for CLO returns than 2020, as US CLOs distributed 15.54% and European CLOs paid 13.93% annualised

CLO managers show respect to their elders
Alongside lucrative new issues, managers also make time for refinancing and resetting old deals. Our data shows that, in 2021, mid-sized firms were the most effective at this balancing act

Moving fast pays off for hedge funds
2020 was an up and down year in credit, and credit hedge fund managers had to move quickly to capture opportunities from the dislocations that inevitably opened up

Relative value plays swell secondary
The secondary CLO market has been revived this year as volumes shatter 2019 totals. Investors are finding that secondary values outweighs that in primary, with the added bonus of full portfolio disclosure

Managers weigh up matters of principal
CLO managers that were able to avoid OC traps made double-digit equity distributions in Q2, despite the headwinds. But these firms tended not to be among those that built the most par

Still weighed down by 2015 oil price slump
It’s three years since the depths of the oil crisis but offshore service companies — such as the helicopter businesses that transport workers to oil rigs — are not seeing lift-off in prices or profits

Managers pick spots on CLO curve
As refi volumes slowed through 2017, the term curve for CLOs steepened, leading managers to vary their deal tenors as they sought to hit the evolving sweet spot.

Transport and logistics: heavy debt leaves transporters in jam
With logistic specialists getting a rough ride, debt restructuring could be the next stop for asset-light companies

Leading fund: Lupus Alpha CLO Opportunity Notes I
Single-B CLO trades boost Lupus Alpha asset Management

Spotlight: Data centres - clear skies ahead for cloud providers
Demand for data centres is strong and there is no sign so far that the market is overheating

Move up the stack to avoid implosion
Pundit warns investors to be concerned about return of their principal – but senior loans may be a safe haven as credit yields are squeezed and high yield becomes crowded

Real money chooses European credit
Creditflux’s biggest ever survey of institutional investors shows that real money investors are gravitating towards European credit

Finding value near the market’s peak
Central bank buying is driving credit to new highs. Pundits suggest looking at long-dated bonds, options and selective shorts as ways to make money in a world of tight spreads

Cream of the credit research
In our first round-up of last month's most eye-catching credit research, we pick pieces on energy options, green bonds and using tranches as CLO hedgesIn our first round-up of last month's most eye-catching credit research, we pick pieces on energy options, green bonds and using tranches as CLO hedges

Road haulage: Clear road ahead for truckers
A tailwind of economic growth is helping trucking companies – and they are avoiding the temptation to overload on debt and capacity

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

CLO surge through third quarter
US CLO volumes stayed strong in the third quarter, with GSO remaining as the largest manager globally and Citi once again taking the top arranger place

Managers launched since 2000 rise in credit hedge fund ranking
Oaktree continues to dominate the ranks of the largest credit hedge fund managers but firms launched this century have seen their share of assets rise

Giant takes sharp turn towards CLOs
It is one of the biggest banks, but BNP Paribas moved nimbly after the crisis to build on its position as a leader in credit derivatives by adding a CLO arranging business

How to value a coco
Converting default risk into conversion risk provides a method for valuing contingent convertibles, according to Patrick Cheridito and Zhikai Xu  

How end investors see credit
Pension funds, sovereign wealth funds and endowments are important investors in credit. But how do they choose a manager? And what kind of credit do they like? By Mike Peterson

CLOs ready to call for refinancing
CLO 2.0s are starting to exit their non-call periods in large numbers. A modest move in spreads would trigger a wave of refinancing and repricing

Fine-tuning the momentum signal
Daniel Haesen, Patrick Houweling and Jeroen van Zundert describe an approach that slashes volatility and improves returns in momentum strategies for corporate bonds