Credit traders' kickstand: market whipsaw throws tranche trades and index rolls into focus
Credit's relief rally was unlikely to last long, but hopes of reaching the weekend are dashed on today's sharp reversal, right as CDX HY and CDX EM roll into new series

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US CLO triple As stage recovery as high quality paper trades near par
US CLOs are recovering with some first-pay tranches being bid near at and around par, according to data from Trace

US pension to cut long-term private markets pacing plan by 10%
The Educational Employees' Supplemental Retirement System of Fairfax County is considering reducing its 10-year private markets pacing plan commitments by around 10%, according to board documentation seen by Creditflux

BDCs face asset coverage pressure as Fitch puts two on negative watch
Fitch Ratings has placed ratings on the debt of two business development companies, BlackRock Capital Investment Corporation (BB+) and New Mountain Finance Corporation (BBB-), on negative watch

US loan index rises for second consecutive day
The credit markets felt some reprieve on Thursday as the S&P/LSTA index rose for the second consecutive day, rising by an unprecedented 3.33%

30% of CLOs will breach their 7.5% triple C buckets, says BofA
The number of CLOs tripping their 7.5% buckets for loans rated triple C is set to soar from 8% to around 30%, according to the latest research from Bank of America

Delay on derivatives phase five initial margin roll-out is vital, says Isda
Regulators must agree to delay the roll out of the next initial margin phase because of the coronavirus pandemic - and notify the market soon, the International Swaps and Derivatives Association has said in a letter signed by 21 trade associations

Ohio pension injects $175 million into credit via JP Morgan and HPS
The School Employees Retirement System of Ohio has made a $175 million commitment to two strategies; high yield and direct lending

Private credit managers re-examine docs in new fundraising approach
Private credit managers are facing numerous challenges and those looking to fundraise have had to change the way they approach the process, including documentation, according to a note from DLA Piper

CLO trading head leaves job to rejoin Macquarie
Macquarie has rehired a former member of its asset management unit as an associate director focused on principal trading of CLOs, ABS and other structured credit products

Jump-to-default risk collapses after Senate backs biggest ever US relief package
The US Senate's agreement of a record $2 trillion stimulus package is shaking jump-to-default risk from high yield corporate credit today, with some iTraxx Crossover constituents shedding over 1,000bp from the front end of their CDS curves

Churchill collects $2 billion for second unlevered US direct lending fund
Churchill Asset Management has held a $2 billion final close on its second US direct lending fund, doubling its original $1 billion target size

SEC relaxes borrowing rules for funds affected by covid-19
The US Securities and Exchange Commission has granted registered funds temporary relief and flexibility to borrow capital from affiliates and enter into lending arrangements as they address the impacts of covid-19 on their portfolios

US fund managers put on leveraged CLO triple A trade with a view to 13% returns
Hedge fund managers are looking to buy US CLO triple A tranches with leverage as valuations for these positions dip into the 80s

Bank looks to unwind $632 million loan TRS
A US bank has looked to liquidate a total return swap vehicle by putting out a loan bwic, according to market sources, with the vehicle sized at $632 million

Credit markets rally, but hopes rest on US stimulus vote
Credit spreads are rallying back today, along with other financial markets, as hopes rise the US congress will agree a massive fiscal stimulus package and other governments in major economies echo a "whatever it takes" line to combat the coronavirus outbreak

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The last few weeks have affected the way everyone goes about their daily routine. To make things slightly easier for our readership, subcribers can receive the April Creditflux newsletter at their home addresses

S&P puts US CLOs on negative watch including seven failing triple C test
Standard and Poor’s put focus on the recent volatility by placing tranches in 15 US CLOs on a negative watch for having large exposures to energy related sectors such as oil and gas, consumable fuels and commodities. In total, 25 tranches have been affected by this.

Fed unveils IG bond buying programme and direct lending plans
The US Federal Reserve has unveiled further measures to support the US economy alongside plans to establish a direct lending initiative - Main Street Business Lending Programme – to support lending to small-and-medium sized businesses

CIFC hires research head from Genworth Financial
CIFC Asset Management has hired a head of research in its New York office

Credit market hits new wides as government outbreak measures intensify
Credit market are making another push wider at the start of the week, after governments tightened restrictions on movement to deal with the escalating coronavirus outbreak

Elizabeth Warren demands data on tanking lev loan market
US senator Elizabeth Warren has requested leveraged lending data and detailed information about the risk posed by loans, having aired her concerns about covid-19's impact on this market in a letter to treasury secretary Steve Mnuchin

Credit traders' kickstand: rolling with the pain, as relative value trades come unstuck
What a difference a month - and a pandemic - make. This time in February, no-one could have imagined a global financial crisis would be unfolding, that credit performance would be a battle between a virus and some of the biggest government and central bank interventions on record, that today's iTraxx Europe and CDX index rolls would traverse unprecedented ranges, that option expiry strikes would be blown beyond recognition, or that cash and CDS differentials would be whipsawing with such violence

Investors pull $10.9 billion out of corporate IG ETFs in one week
Outflows from loan and high yield bond exchange traded funds have exacerbated the liquidity pressure facing credit investors, sources say, as market volatility intensifies after economists slashed global forecasts