Creditflux

Ucits at a glance
A round-up of ucits fund performance

Loan shocks give 2018 warehouses yet another scare
The recent sell-off in loans could be an unwelcome development for long-dated CLO warehouses, which may have thought they were over the worst after a testing Q1. 

For enhanced CLOs to outperform, investors need the credit cycle to turn — and quickly
If the current credit cycle doesn’t end within two years, triple C-heavy CLOs will not see a return on their high financing costs

If national income were a four-cylinder engine, the US economy is really only firing on one
The US economy’s reliance on consumers increases the likelihood of further rate cuts and diminishing returns for credit investors

CLOs at a glance

A round-up of CLO performance

Credit funds at a glance
A round-up of fundraising and people moves in credit

Fund performance
A round-up of fund performance

One day, two investors, three CLO controlling stakes in secondary
Two investors are inviting bids for anchor positions they hold in three CLOs.

Carlyle CLO warehouse investment results in 26.7% return for South Korean firm
A CLO warehouse investment in a transaction managed by Carlyle Group has generated a $1.3 million return for Seoul-based Tiger Alternative Investors, according to a report in The Korea Economic Daily

Green bonds and international credit deliver double-digit returns for Swedish pension
Second Swedish National Pension Fund (AP2) reached SEK 367.4 billion in the first half of 2019, with investments in fixed income generating double-digit returns, according to its half year report  

Janus Henderson increases position in CLO Ucits fund
The London-based manager says that, while it has cut exposure to CLO funds, this one has has a more conservative nature 

Solar BDC shines a light on its bid to focus on first lien loans
Solar Capital is taking a prudent approach to loan investments with the firm reducing its exposure to second liens, according to the business development company's earnings call

CLO managers suffer puncture with $85 million of Jack Cooper debt
CLO managers hold $85.8 million of exposure to auto hauler Jack Cooper Ventures, which filed for Chapter 11 bankruptcy, according to the latest trustee reports from CLO-i 

Och-Ziff revenue tumbles despite inflows to credit funds and CLOs
Och-Ziff Capital Management posted a net loss of $8.6 million in the second quarter, which it blamed on the market’s reaction to US China trade tensions and the US Federal Reserve’s twist of monetary policy

Enhanced CLOs are no more enhancing than run-of-the-mill distressed funds
Triple C-heavy CLOs that try to time the market may be paying for options they never use

US CLOs thrive as managers embrace secondary loan market
Leveraged loan issuance is supposed to feed and keep CLOs healthy, but a 62% slowdown in US loan volumes this year was accompanied by average CLO equity distributions ticking 19% higher.

Ellington finds Ucits success with mix of structured and synthetic
Fund managers are finding ample liquidity in the structured and synthetic credit market and this is helping them outperform in the Ucits fund universe.

Sound Point swaps evergreen fund for drawdown
Sound Point Capital Management is dropping its evergreen distressed debt fund in favour of a vehicle that will employ a drawdown structure, as is customary for distressed strategies.

Considering the variables over the life of a CLO, a drop in Libor is a relatively modest risk
Changes in Libor do not have a major impact on CLO equity cash flows or equity yields

Fund performance: Mercury rises as does credit fund performance

Ucits at a glance: Amundi and Loomis Sayles funds register big gains in H1

Credit funds at a glance

CLOs at a glance
A round-up of CLO performance

Philadelphia Energy bankruptcy tars nine CLO managers with $241 million exposure
The Philadelphia-headquartered company has entered into bankruptcy protection for a second time, having only emerged from its first filing in August

Credit plays a big part as KKR increases AUM by $6.5 billion
KKR grew its assets under management by 8% over the second quarter, according to the firm’s earnings call, which took place on Thursday.