Fund performance: CLO funds keep up the momentum for second month running
May returns have been led by continued momentum from CLO funds. In the last month, funds that invest in CLO notes in some capacity have made up 90% of our top 10, while 97% of funds listed generated positive returns - an improvement of 15% on last month's figures.

Ucits at a glance: Ucits recover lost ground
The foot has come off the gas for many funds - 57% of funds did not break the 2% return barrier.

Trading places: it can pay to bet on the little guy
It’s assumed investors know how good a CLO manager is by the rate at which they trade their way through a crisis. But this time fi ve small, nimble managers are outperforming the market

Preparing for a second wave
Panellists on the Creditflux US private credit webinar last month said that they were focused on companies most affected by the coronavirus. A reopening of the primary market can wait

It’s all going to plan
Whether managers are relaxed because they can make up losses later, or are putting more money into their deals, panellists on the Creditflux West webinar weren’t panicking about OC breaches

Investors take comfort from an active secondary market, but liquidity can be a mixed blessing
One of the most interesting characteristics of credit behaviour during the coronavirus era has been the momentum of junk bonds, with sharp changes in issuer and investor confidence around the asset class driven by technical factors: near-zero interest rates, the Fed’s support of fallen angels and skewed-to-worse ratings for leveraged loans

US and Europe diverge as loan trading bands emerge on the continent
Europe and the US are on different courses with credit indices having drifted apart over the past month, say trading sources. Europe is expected to suffer fewer defaults to the extent that "it’s getting quite difficult for borrowers to default”, as one source put it. But the US has "higher growth potential due to its more dynamic economy"

Algebris leads monthly returns in new world matrix
Algebris Macro Credit's return submission for May was among the best non-CLO/ABS fund performers out of those Creditflux tracks, adding to a strong turnaround for the strategy

Time catches up with middle market CLOs as Moody's takes rating action
Moody's has taken rating action on nine middle market CLO tranches by putting them on review for possible downgrade, the agency said in a statement

Rockford Tower CLO fails to meet effective date requirements
A 2019 CLO managed by Rockford Tower Capital Management has failed to meet requirements relating to its effective date on 22 June due to breaching its Moody's weighted average rating factor test

75% of US CLO warehouses 'avoided crisis situations', finds Maples
Just a quarter of US CLO warehouses administered by Maples Group were required to take remedial action, or seek amendments, since the start of the coronavirus pandemic, according to a report by the firm

HPS CLO warehouse hit by downgrade as it reaches 8.34% triple C assets
CLO warehouses have been hit with an increasing number of triple C assets in their portfolio. And those in one CLO warehouse managed by HPS increased from 0.5% in March to 8.34% by May

OC health check: slowing of downgrades offers some reprieve for CLOs stuck in breach
89 deals reported overcollateralisation breaches last week, but only seven of these deals were breaching any OC test for the first time, according to the latest reports available on CLO-i

Insurers' CLO triple A and double A investments can survive most severe stress tests, report finds
A stress test performed on US insurers' CLO investments, as of December, shows that even under the most severe coronavirus default and recovery assumptions, double A and triple A-rated tranches are protected against principal losses

Moody's downgrades five tranches from three Carlyle-managed CLOs
The rating agency took action on the ER tranche of Carlyle's 2015-3 CLO, the CR and DR tranches of its 2015-4 CLO, and the CR and DR notes of its 2016-4 deal

Moody's downgrades three tranches of 2017 vintage European CLO
Moody's has downgraded three tranches of a 2017 vintage CLO managed by Bardin Hill

Fair Oaks tops up on double B CLO tranches in May
Fair Oaks topped up on double B-rated CLO tranches in its listed CLO fund in May, adding $79 million par value of BB-rated paper

Ares 2016 US CLO suffers downgrades to three tranches
Moody’s has downgraded three debt ranches from Ares XL CLO, a 2016 US CLO which is passing its par value tests

Moody's downgrades first CLO tranche from Caa3 to Ca
Moody's has downgraded three tranches of Halcyon Loan Advisors Funding 2014-1, with the class F notes rating dropping from Caa3 to Ca, the rating agency announced today

Light at end of tunnel as S&P puts two loan issuers on creditwatch positive
Panellists at IMN's CLO and leveraged loan webinar were optimistic about the future of their markets as S&P makes first positive rating action on leveraged loan issuers since the pandemic outbreak

Manager launches structured credit fund after increasing exposure in multi-strat portfolios
A New York-based asset manager has launched a hedge fund to invest in structured credit after investing $2.2 billion in credit and structured credit in March

Zais structured credit fund gains 13% for US pension
Zais Group has generated 13.1%  returns to a west coast pension fund through its CLO-focused strategy dubbed ‘Zephyr 7’

Moody's downgrades one tranche of 2018 European CLO
Moody’s downgraded the class D tranche of a 2018 vintage CLO managed by Man GLG 

Beneath the triple C: downgrade rate slows as $8 billion of CLO loans tumble
May offered some respite to CLO portfolios as corporate downgrades to triple C were reduced heavily - affecting just $6.67 billion of US CLO paper and €1.09 billion of European CLO portfolios