A strong year for CLO strategies
After the pain of 2022, credit fund managers must have been praying that 2023 turned out better. It did.

Banks predict steady year ahead
It’s the season for predictions and the CLO market is no exception, with all the banks having their say. We’ve rounded up their forecasts for new issuance and resets in the US and Europe

Weren’t there more of us than this?
According to this year’s Creditflux CLO Census, the CLO industry is not feeling optimistic. Some investors have vanished and managers have not taken advantage of helpful market conditions

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

You seem familiar
The overlap between European CLOs has risen to 51.6%, but the largest issuers are only slightly more aligned to their peers at 55.19% — so bonds are proving to be an important differentiator

Evolving strategy takes Norinchukin close to top spot in CLO investment
Over the years, Nochu has tweaked its cov-lite stipulations, and added mid market and European CLO exposure to its CLO investments. It’s now nearly the market’s biggest investor  

Think outside the box
While the US market credit is the most liquid and the UK is considered the home of European direct lending, there are opportunities further a?eld

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

An end to bump and reval
Adjoint algorithmic differentiation can slash the computational time for valuation by three orders of magnitude. Luca Capriotti and Jacky Lee show how it can be applied to credit

CLO 2.0 managers get active
Data from CLO-i shows which managers traded their CLOs most actively and which managers bought assets at the lowest price in 2013

Spotlight on Asian electronics companies: Giants teeter as Koreans’ sales grow
With Korean companies winning in growth markets and very competitive on price, giants such as Sony and Sharp are struggling.

CLOs that delivered
Sayed Kadiri hunts among the growing number of called CLOs to find the deals that have delivered the highest final returns for equity investors – and finds one with a 150% return

Credit spotlight: Still loving it
Leverage is high but the fast food sector is doing well even as consumer spending falls – so it’s no surprise that credit investors are tucking into large portions

Calculating risk in real time
Luca Capriotti, Jacky Lee and Matthew Peacock describe a new technique that can hugely reduce the time taken to calculate credit risk in a Monte Carlo simulation

A very messy default
A very messy default

Casinos see their long-running lucky streak come to an end
Casinos see their long-running lucky streak come to an end