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Opinion
July 2022 | Issue 247
Past returns
Ramp-up failings
Five years ago in Creditflux, we reported that CLO investors were fed up with misleading model portfolios.
Apollo Global Management’s Joe Moroney said his firm had conducted an analysis of 20 new US CLOs and found that only three delivered on their promised weighted average spread.
Today, model portfolios are crucial, with several CLO managers lining up print and sprint deals that depend on loans being sourced at a particular level.
Points up front
CLO guy Boehly becomes global household name
The CLO market might be a $1 trillion industry, but we’ve been waiting years for a “CLO guy” to break into the mainstream. Step forward Todd Boehly, already a big name in the US through his role as owner of the LA Dodgers, but now recognisable in Europe after buying Chelsea Football Club.
Boehly was the founder of Guggenheim’s credit business before setting up Eldridge, which, in its early years, launched a CLO investment business and management platform (CBAM was sold in March to Carlyle for $787 million).
Given his background in CLOs, we think Boehly will feel at home in football. Both place a great deal of importance on what happens at the top end of the field — whether it be signing strikers or placing triple A debt. And both are reliant on a quality manager running the show.
However, he might be taken aback at the speed of substitutions. They take 30 seconds in football, while some CLO managers have to wait a whole off-season to get loan trades settled.
CLO flagbearer: Boehly may get Chelsea fans singing about super securitisations instead of ‘Super Frankie Lampard’
BofA takes both sides
As dealers joined forces for the Octaura electronic trading platform, KopenTech announced a rival that enables investor-to-investor trading. KopenTech has 16 dealers on its platform to Octaura’s seven — but only Bank of America is named on both.
THEY SAID IT
“We are proud to be moving our industry in a direction that will bring greater liquidity, efficiency and ultimately attract a broader investor base”
Brian Carosielli, co-head of global credit trading at Bank of America on the launch of loan and CLO trading platform Octaura.
Global credit funds & CLO's
July 2022 | Issue 247
Published in London & New York.
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