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

Sovereign borrowing will crowd out corps and produce fallen angels, warns BofA
Investors should be wary of buying coporate credit that yields less than sovereign debt, Bank of America strategists have warned, predicting €20-30 billion of European fallen angel volume lies ahead as the market cycle turns

Global CLO b-wic round-up: triple A volumes hit nine-year highs, but equity valuations could be "single digits"
Over $2.5 billion of US CLO paper listed in b-wics in last week's manic trading, with a further €435 million of European CLO bonds also on sale. CLO buyers and sellers turned to the safest part of the capital structure – the triple A rated notes – and away from its most illiquid asset class, with no equity bonds listed in either market

Dutch VAT ruling to reduce impacted CLO equity returns by 1 to 2%, says BofA
The Dutch tax authority’s decision to charge a 21% VAT on CLO collateral management fees will have a ‘substantial’ impact on equity, with returns likely to be 1 to 1.2% lower going forward, according to a research paper published by Bank of America

BlueBay adds distressed specialist to EM credit team
The hire follows BlueBay appointing Mihai Florian in January to develop the firm’s capabilities in illiquid emerging market corporate credit 

European CLO single Bs jump to 1,100bp with GSO deal - but seniors hold firm
Junior European CLO spreads have slumped, with GSO Capital Partners pricing new issue single Bs at 1,100 basis points on Friday

Global CLO league tables - February 2020 YTD
Global CLO league tables - February 2020 YTD

Elmwood passes $2.5 billion CLO volume in just a year
Elmwood Asset Management today teamed up with Bank of America to issue its fourth new issue CLO, according to market sources, bringing its overall volume over the $2.5 billion mark

European CLO managers with big bond buckets do best, finds Bank of America
European CLO managers that trade in the secondary market and hold a higher percentage of fixed rate assets are likely to outperform their peers, Bank of America finds in latest research

Alcentra prices second CLO refi in eight days
Alcentra has refinanced its second CLO in eight days, as managers continue lining up to refinance 2017 vintage deals

CLO market celebrates Valentine's Day by romancing with resets
Refinancings have been the talk of the month in the CLO market, but this Valentines day saw managers turn their minds to resets

Invesco sets new benchmark in European CLO market
Invesco priced Europe’s sixth new issue CLO of the year on Friday, according to market sources. Invesco Euro IV pays 93bp over Euribor on its triple As, the tightest print of any European CLO with four or more years of reinvestment  

2020 US CLO refi volume passes $5.4 billion as Brigade and Bain price
US CLO refinancing volume this year passed $5.4 billion yesterday as Brigade Capital and Bain Capital together refinanced over $1 billion CLO paper

PGIM refinances 2016 vintage CLO acquired from Columbia
PGIM has refinanced a 2016 vintage CLO it bought portfolio management rights for in 2018, according to market sources

Credit funds at a glance

Triple A spreads burrow deeper as GoldenTree prices $616 million CLO refi
GoldenTree Loan Management on Friday brought the largest CLO refi yet of 2020

CLO funding costs drop thanks to tighter mezz as Brigade prices US deal
Brigade Capital Management priced its latest CLO offering named Battalion CLO XV via Bank of America yesterday

CLO pipeline: a refi of nine cuts time (and margins)
Nine US CLO managers are preparing to refinance one of their CLOs to lower financing costs

Brigade set to price new US CLO today with triple As subject at 135bp
At a time when spreads are contracting, the senior triple As in Brigade Capital Management's upcoming CLO are subject at 135 basis points, some 5bp wide of the market average in 2020

BofA promotes CLO trader to managing director
A CLO trader, who has spent over 12 years at Bank of America, has been promoted to managing director in New York

Euro CLO league tables: new issues shatter 2018’s record but total issuance falls
The European CLO market continues to grow at a record shattering pace with 2019 new issuance volumes totalling €29.8 billion, an 8% increase on 2018’s previous record figure, from 53 active managers

CLO 2020 outlook: lower volumes predicted, but it’s not all bad news
US CLO issuance is expected to drop by roughly 20% next year, according to bank research desks. This comes after a solid 2019 in which $101 billion of new US CLOs have priced through 92 managers, as Creditflux goes to press

Redding Ridge prices new CLO almost fully ramped
Redding Ridge Asset Management opted for delayed draw double B notes yesterday with the pricing of its second new issue US CLO of 2019 and fifth new issue globally

Former structured credit co-head Messina lands on buy side
Megan Messina, former co-head of structured credit at Bank of America, has resurfaced at an asset manager three years after leaving the bank

Oaktree scores second new euro CLO of 2019
Oaktree Capital Management priced its second new European CLO of the year, known as Arbour CLO VII, via Bank of America