‘You have to prepare for further tightening’
In the first Investors's Corner, we spoke with Tetragon's Dagmara Michalczuk to discuss CLO equity

Experienced CLO investor set to leave Tetragon
A well-known CLO tranche investor is set to leave Tetragon Credit Partners.

LCM looks to CLO print and sprint amid platform sale discussions
LCM Asset Management is marketing a new CLO, despite Creditflux reporting the platform is in discussions for a sale

US CLO manager valued at $278 million goes up for sale
One of the most consistent US CLO issuers for two decades is on the market

Sofr, so complicated
At Creditflux’s US CLO Summit debate centred on Libor and Sofr. Hot topics included tenors, Libor floors being out-of-the money and investors changing their views on spread adjustments

US loans recover but CLOs lag and issuance stutters
The US leveraged loan market spent the latter half of March recovering losses from Russia’s invasion of Ukraine, with prices now above where they were when the war started

Everyone’s ramping

The Last Tranche with Tetragon's Michalczuk and Pang: Every missed quarterly payment can reduce CLO equity IRRs by up to 100bp
In this episode of the Last Tranche, Tetragon Credit Partners' Dagmara Michalczuk and Michael Pang tell Creditflux that CLOs that missed an equity payment during the covid-19 crisis in 2020 impacted returns by between 20 and 100 basis points

Credit markets heed early indicators of inflation pressure
Inflation became the topic du jour after the consumer price index (CPI) grew 4.2% in April, its fastest rate since September 2008 and much higher than the 3.6% many analysts predicted

2020 wrap: CLO funds bloom despite rocky ground
2020 was a busy year for CLO fundraising, with Creditflux recording at least 30 funds that launched over the 12 months to invest across the CLO capital structure

We were battered in 2020 — but we weren’t beaten
The CLO industry has survived a year blighted by covid-19. We talk to portfolio managers about the strengths of CLOs and preparations for what was expected to be a ‘cataclysmic’ recession

CLO investor draws up solution to phase out ‘TriMark loopholes' but concept divides market
TriMark’s latest transaction has sparked widespread debate among the CLO community, with the borrower having joined Serta Simmons and BoardRiders earlier this year to aggressively amend its credit agreements. One CLO investor says it is working on industry-wide solutions to address the issue including adding concentration limits to CLO documentation 

Ex-Fortress official launches $1.5 billion litigation finance firm with Tetragon backing
The new business is backed by Tetragon’s TFG Asset Management, which will receive a minority equity interest, while Fortress has entered into co-investment agreements with the newly launched firm 

Triple A CLO investors advocate return to five-year reinvestment
As senior CLO spreads tighten across the globe, investors are pondering a return to pre-covid standard structures — but not everyone is in favour

Two US managers launch CLO funds geared towards dislocation
Tetragon Credit Partners and Octagon Credit Investors have become the latest managers to launch a CLO fund geared towards taking advantage of coronavirus-related distressed buying opportunities

Managers seeking bond buckets will need high yield track record
US CLOs could soon be permitted to buy corporate bonds amid an overhaul of the Volcker rule, but market sources say that in the short term bond flexibility is a luxury that will only be afforded to a select group of CLO managers.

TCI-Symphony and GSO refinance single tranches of 2016 CLOs
Two CLO managers on Friday refinanced single tranches of their 2016 deals, according to market sources. TCI-Symphony and GSO Capital Partners priced seemingly mirror image transactions, having refinanced the mezzanine notes of  the CLOs last November

Danish pension fund eyes niche credit opportunities
PensionDanmark is preparing for more volatility in 2019 by casting its eye towards niche opportunities in the special situations and distressed debt market. The Copenhagen-based pension fund last month merged its alternatives and private debt platforms

Tetragon raises $430 million for new CLO equity fund
Tetragon Credit Income III closes with total commitments of $430 million

Control equity investor decides against reworking CLO triple As in $140 million refi
Another US CLO has been refinanced without the triple A-rated notes being troubled

CLO market gauges counterparty risk as it predicts economic cycle will turn
Credit is showing symptoms of a cycle in its latter stages, according to CLO market participants. While this makes loan and manager selection important, participants are increasingly focusing on counterparty risk.

CLO veteran parts ways with Tetragon
A senior structured credit veteran has departed Tetragon, according to market sources

Tetragon confirms appointment of former BlackRock US CLO co-head Snell
Scott Snell, former head of BlackRock's US CLO unit, has joined Tetragon