From a reopening CLO market to mass OC failures: covid-19 stories on creditflux.com
1 April
Home-bound CLO portfolio manager takes on stress-testing
A jovial start to the month as lockdown drives a CLO PM to tranche everything in his living space, from cereal to clothes and shoes. #checkthedate
27 April
OC health check: CLO test failures head over 100
Mass rating downgrades caused another 116 CLOs to breach their overcollateralisation tests in the last week of April, according to trustee reports on CLO-i. Five of the deals have failed OC tests for all their debt classes.
Source: CLO-i
3 April
Unique CLO upsizes to $22 billion
The floodgates open (sort of) as Newfoundland CLO, a Barclays balance sheet deal, more than doubles in size.
7 April
Former credit prop trader relaunches credit hedge fund
Palm Lane Partners, led by Fahad Roumani, is relaunching at an ideal time for any start-up. The fund manager is expected to buy all types of structured credit.
2 April
GSO reopens primary CLO market
A breakthrough as GSO prices the first CLO since covid-19 escalated into a pandemic.
14 April
Four European CLO managers aim for breakthrough
Axa IM, HPS, Oaktree and Permira are at the front of the queue to reopen the European CLO market. Permira gets its first pricing on 27 April.
8 April
Beneath the triple C: $31.6 billion of CLO credits suffer
March madness took a toll on CLOs as Moody’s and Standard & Poor’s downgraded 4.3% of portfolios in the US and 1.8% in Europe to triple C or below.
9 April
Fed backs new issue CLO triple As in amended talf programme
The US Fed takes action, adding CLOs to its talf programme. However, CLOs will struggle to meet eligibility criteria.
16 April
Eagle Point cuts dividend on listed CLO fund
Public CLO funds absorb sharp NAV declines as listed vehicles managed by Axa IM, Fair Oaks and Marble Point suspend dividends and Eagle Point cuts its distribution by 60%.
16 April
Neuberger Berman and CSAM raise funds
First signs of real money investors allocating to CLOs as Neuberger plans $500 million CLO fund and CSAM raises $100 million.
20 April
Moody’s puts 976 tranches on negative watch
Moody’s joins Fitch and S&P in putting CLOs on watch.
22 April
Seven point basis opens up in CLO triple Bs
On watch CLO triple Bs are trading seven points below triple Bs that have the all clear.
23 April
Accunia creates co-heads after CIO leaves
CLO manager Accunia parts ways with Mads Romild, its CIO and head of CLOs. It appoints Rajiv Thacker and Andres Garcia as co-heads of its CLO unit.