News

News in brief

Top stories on creditflux.com: including possible Palmer Square sale and Serone hires

11 August

King Street defeats Octagon in heated dispute over CLO fund

More than two-thirds of shareholders in XA Investments’ Floating Rate & Alternative Income Trust (XFLT) backed the board’s recommendation to replace existing sub-adviser Octagon Credit Investors with King Street subsidiary Rockford Tower. The decision closes out a weeks-long dispute over the sub-adviser role for the fund, after incumbent Octagon came under scrutiny following claims of underperformance. At a special shareholder meeting on 6 August, the vote to approve Rockford Tower as the new sub-adviser met the requisite supermajority of at least 67%.

New York-based Young Choi will serve as the new portfolio manager for XFLT. He is also global head of trading and the portfolio manager for Rockford Tower and King Street’s Opportunistic Credit Strategy.

7 August

CLO equity funds to become dominant source of funding as trio of new funds prepares to hit the market

At least three funds investing in CLO equity will soon come to market, as the vehicles become the dominant source of funding for new CLOs, according to industry sources.

14 August

Palmer Square explores possible sale of its business

The firm is currently holding conversations and is looking at both organic and inorganic growth options, a source familiar told Creditflux.

14 August

Serone makes three hires to push into US CLO management

The firm has hired three credit veterans, including HPS’ Nicole Bruno, as part of its ongoing efforts to launch a US CLO platform.

19 August

New CLO variant draws scrutiny from US insurance regulator

The National Association of Insurance Commissioners is fast-tracking a decision on whether securitised products such as Apollo’s AMAPS and APADS can be sold to insurers as bonds.

19 August

CLO managers invest in distressed experts in expectation of higher LME environment

Carlyle and BlackRock are among the CLO managers who have invested in distressed and special credits teams ahead of an expected rise in defaults and LME activity.

20 August

Franklin Templeton closes inaugural collateralised fund obligation at USD 1.5bn

The final close marks the creation of a new capital formation channel for Franklin Templeton’s private markets platform.

21 August

Hayfin in active talks with buyers for its US CLO unit

The London-headquartered credit platform is mulling selling the US arm in its entirety or just the CLO assets, according to a source who is familiar with the proposed move.

21 August

Sona prices market-first hybrid European CLO

The manager has broken new ground by becoming the first firm to price a hybrid BSL-private credit CLO. The dual-currency deal also marks the manager’s first foray into private credit CLO issuance.

28 August

Eagle Point to make imminent infrastructure CLO debut

Intriguing developments from the alternative credit firm Eagle Point, which is said to be working on proposals to launch its first infrastructure CLO, inside sources have revealed to Creditflux.

Points up front

CLO market preps for a busy autumn

For 24 hours at the start of September, Dublin was the CLO capital of Europe. Investors, CLO managers and service providers flew into Ireland to attend Opal’s first Dublin CLO and Private Credit Forum.

It set up a curious contrast: Europe was back at work and talking business while US participants across the pond were enjoying the last remnants of summer. The reason: a late Labor Day holiday that allowed US teams to laze about for an entire week of September.

In Dublin, there was a back-to-school energy in the air, as delegates swapped stories of summer holidays and an unseasonably busy August. They were also bracing for an even busier September. There’s a robust pipeline for both leveraged loans and CLOs in the US and Europe, according to market participants.

The jovial mood carried on into the evening in the pubs of Dublin, where the Guinness flowed freely, as the rain outside served as a reminder that the summer is definitely over.

Opal: business then Guinness

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