May 2021 | Issue 234
Past returns
Hedging is back
Ten years ago in Creditflux we reported that loan managers had begun hedging after loan prices stabilised back to par following the global financial crisis. These loan managers were worried about future loan slumps and began using credit options and ETFs.
Over the past decade the number of credit hedge funds that employ classic long-short strategies has dwindled.
However, there has been a revival of late in credit trading strategies. In 2020, Birchlane Capital and Palm Lane were the biggest credit fund launches in this area. And this year Fairwater Capital is expanding.
Points up front
Abrdn finds text appeal
Marketing consultants have been working overtime to concoct new brand names, but their efforts have not been met with universal acclaim.
No, we’re not talking about Permira quietly dropping the PDM (Permira Debt Managers) label in favour of the more PC moniker Permira Credit. We’re referring to Standard Life Aberdeen, which announced it was changing its name to Abrdn because this was “a modern, agile, digitally-enabled brand”.
The rebrand has been widely lampooned with observers quick to mimic the 1990s text-speak approach in social media posts. But we say give the firm a break. In fact, we think Abrdn staffers should revive other quintessential 90s classics by donning bandannas, listening to Britpop and dusting off their VHS players to re-watch US comedy Friends.
It does not get much more modern and digitally-enabled than that.
Abrdn is Sctlnd’s third most populous city and is located north of Dnd and Glsgw
The flattest term curve: work anniversary rewards
If you think CLO term curves are flat with a handful of basis points between three and five-year triple A CLOs, then you haven’t seen anything yet.
A banker tells us they were pleased to be handed a £100 ($139) gift voucher when they reached five years of employment. But the reward for reaching their 10-year anniversary was just £120, which left them feeling, well… flat.
“The CLO business continues to move forward... it is still going strong”
A spokesperson for Deutsche Bank says it is committed to US CLO new issues after we report on US CLO syndicate head David Ryan leaving. Shortly afterwards, Deutsche priced its first new issue US CLO of the year for MJX.
Global credit funds & CLO's
May 2021 | Issue 234
Published in London & New York.
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