September 2021 | Issue 238
Past returns
Prophet’s early CLO redemption
In Creditflux five years ago, we reported that Prophet Capital, the control equity investor in Covenant Credit Partners CLO I, had driven liquidation of the deal.
This was unusual because the CLO still had two years of its reinvestment period to run and equity returns typically peak during that phase. Also, the advent of CLO resets a year before had meant CLO liquidations were becoming rare.
Three months later, Creditflux reported that the Covenant Credit CLO team had partnered with Stream Companies, a family office. In 2018, the business changed hands again, with AIG acquiring the platform as it returned to CLO management.
Points up front
Swapping bylines for a role on the buy side
Creditflux has specialised in CLO coverage for over a decade now and generally we’ve had a clear run at the market because few of our peers appreciate how the CLO machine works. The exception to that has been highly-respected Bloomberg journalist Sarah Husband, who announced last month that she was giving up writing CLO scoops in favour of a move to the buy side.
Husband tells us the most memorable part of writing about the CLO market has been interacting with the people that work in the business. “The overwhelming response to my decision to move to a different role has underlined what a collaborative community this is,” she says.
“My one hope is that my coverage has gone some way to debunking CLOs as a misunderstood and feared asset class.” Creditflux would like to congratulate Husband on her achievements and wish her every success. On the record we’d like to add: it won’t be the same without you on the other side, Sarah!
Bye-bye CLO reporting, hello buy side: Husband is heading for asset management
Tasty vaccine giveaway
Asset manager Vanguard is welcoming employees back to the office by offering a $1,000 bonus to staff who are fully vaccinated by October.
It’s a laudable idea, but maybe it’s too generous. Some vaccine incentive schemes — known as ‘kebabs for jabs’ — make do with discounts on takeaways.
“The debtor’s [Highland’s] founder, James Dondero, created an elaborate web of approximately 2,000 business entities”
Highland’s unsecured creditors break down the company’s corporate structure, which they claim is “likely, intentionally complex” in court filings.
Global credit funds & CLO's
September 2021 | Issue 238
Published in London & New York.
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