News

News in brief

Top stories on creditflux.com: new hires, products and prints

28th October

French protests hit leveraged loan markets as CLO managers cool on country’s debt

European CLO managers are becoming more selective about France-based loans, as the country’s political and economic problems spill over into the leveraged loan market. Earlier in the month, against a backdrop of country-wide protests, France’s 10-year bond yields crossed the 5% threshold for the first time since 2002.

In their most recent European CLO Weekly report, Bank of America analysts warned there is now a fear of contagion spreading from sovereign to corporate risk. This view has been echoed by European CLO managers in conversations with Creditflux.

Certain segments of the French loan market have been more challenged than others. Healthcare and pharma names such as Biogroup and Cerba are particularly reliant on government tariffs, so any issues with the French budget are expected to have an outsized impact on their financial performance.

29 September

Kartesia upsizes debut print as it becomes latest CLO market entrant

The private debt specialist’s inaugural European BSL print had its target par increased to EUR 450m.

30 September

Dominic Courtman replaces Rob Reynolds as Pemberton’s CLO head

Former Investcorp portfolio manager Dominic Courtman has joined Pemberton.

7 October

CIBC hires Deutsche Bank veteran

The Canadian bank has recruited DB’s former head of European CLO structuring Brendan Condon as its new head of CLO primary.

7 October

KKR working on own version of Apollo’s AMAPS

KKR is actively working on its own version of Apollo’s Multi-Asset Prime Securities, according to two sources familiar.

8 October

Park Square rebuilds CLO team after PM departure

The London-based manager is hiring as it rebuilds its European CLO team following the departure of Ryan McGahon.

9 October

Palmer Square to launch market-first US PC/BSL hybrid CLO

The asset manager is set to launch the first ever US CLO combining private credit and broadly syndicated loans.

14 October

Sculptor names new CLO head

Richard Bellucci has joined Sculptor as its head of US CLO origination and capital markets.

15 October

Investors warn of hidden AI risks in CLO portfolios beyond software

The software sell-off may be hiding the names that AI is really hurting in CLO portfolios, investors have warned.

26 October

NorthWall keeps hiring as it ramps debut European CLO offering

The firm is set to expand its CLO team further, following the recent hires of Attila Takacs and Rosalind Dalton.

27 October

Blackstone hybrid CLO will have 40% private credit allocation on day one

Blackstone’s European private credit/BSL hybrid CLO will have a 40% private credit allocation on day one, increasing to 50% over time, according to a source familiar.

27 October

Ares acquires listed direct lending BDC MidCap from Apollo

The acquisition, valued at USD 2.6bn, saw Ares acquire the BDC at a premium.

Points up front

Hybrid CLO chatter in the US

The securitisation world gathered in Miami last month at FT Live’s ABS East and Private Credit Connect: East. Topics on the agenda included artificial intelligence, regulatory developments, and evolving market structures.

Of particular note was the chatter on hybrid CLOs – those that combine the features of regular-way CLOs and private credit CLOs – that were introduced in Europe and are now making their way to the US. That direction of travel is relatively rare.

Something else that’s rare and difficult to procure is the Hermès Birkin bag. But for those in attendance, including your correspondent, Dechert had an appealing and far cheaper alternative. As part of its swag, the law firm gave out stuffed dogs and a cloth bag that alluded to Birkin bag and was dubbed “Dogkin”.

Swag from US law firm Dechert included a faux-Birkin fluffy dog

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