Creditflux

Minnesota pension to invest $300 million in distressed and private credit funds
Minnesota State Board of Investments is set to invest $100 million in a mezzanine debt fund and $200 million in a distressed debt fund

Marathon issues CLO with limitation on B3 loans
Marathon Asset Management’s new $405 million US CLO has a 25% cap on loans rated B3 and below, says a source close to the deal

Fund performance
A round-up of fund performance click here.

CLO pipeline: US takes up baton after European July sprint
The US CLO market is ready to kickstart issuance in August as nine deals have been added to the running pipeline.

Fund performance: Mercury rises as does credit fund 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

Clover Tech cov-lite loan blots CLOs after spilling a third of its value
The past week’s biggest declining loan by some way, for printing cartridge maker Clover Technologies (aka 4L Technology), is a worry for CLO portfolios as some 21 managers hold the name, according to CLO-i

Weatherford faces credit event auction with 50% area recoveries implied
The Americas Credit Determinations Committee has agreed to hold an auction to settle CDS referencing Weatherford International, having ruled last week the Houston headquartered oilfield services provider had triggered a bankruptcy credit event

US pension replaces Cliffwater with Meketa
Connecticut Retirement Plans and Trust Funds has selected Meketa as a consultant to oversee its opportunistic investments, which consists of direct lending and opportunistic credit investments, along with investments in hedge funds and real assets.  

Controlling equity stake in 2018 CLO fails to trade in secondary market
Over 90% of an equity tranche from a 2018 Sound Point Capital Management CLO was available on b-wic yesterday but failed to trade  

Marathon and MUFG unite for $503.25 million new issue CLO
Marathon Asset Management has returned to the CLO primary market after nine months with its latest new issue named Marathon CLO XIII

Marathon targets 10% for newly-closed aviation leasing fund
The fund, which will be backed commercial aircraft investments, has taken off 

Seriously, the CLO arb is difficult right now

Seriously, the CLO arb is difficult right now
We know the arbitrage for CLO equity is never perfect, but the arb progressively deteriorated through 2018. Since January, the picture has worsened further after a brief respite in December

Fund performance
Long-short and high yield keep up the momentum

Marathon proposes alternative to long-running Medley BDC merger dispute
Marathon has joined the race to take on two business development companies managed by Medley

Marathon adds distressed specialist as credit trader to its New York team
Marathon Asset Management has appointed an experienced credit trader from Cantor Fitzgerald 

Marathon runs up another new issue CLO in $460 million deal
Marathon Asset Management teamed up with JP Morgan yesterday to price its second new issue CLO of 2018

Wide CLO pricing need not be a drag
Established managers can price CLO liabilities at attractive levels, but we find that CLOs saddled with higher financing costs have nevertheless been among the market’s outstanding performers

CLO round-up: reset triple As price apart on divergent portfolios
CLO spreads have been volatile of late with seemingly no consistency in triple A CLO prints from deal to deal. In a reset-heavy week, BlackRock and Marathon Asset Management were positioned at opposite ends of the spectrum

Marathon prices $415.8 million CLO reset as liability costs run wider
Marathon Asset Management priced a reset of its 2015 deal Marathon CLO VIII yesterday, with the triple A notes paying a coupon of 125 basis points 

Marathon EM fund picks up the pace with at least $58 million of inflows
Marathon Emerging Markets Bond Fund, a long-only investment fund focused on liquid assets in the global emering market, has raised at least $155 million, SEC filings show

US credit manager passes $2.7 billion for securitised credit fund
Marathon Asset Management has now raised more than $2.7 billion for its Marathon Securitized Credit Fund, according to regulatory filings

Marathon gets off the mark in 2018 to price $555 million US CLO
New York-based Marathon Asset Management has priced a $555.2 million US CLO in a transaction arranged by Citi

Seasoned credit fund manager rejoins Marathon in New York
A credit specialist has completed a circuit, returning to Marathon Asset Management after nearly 12 years away