Chart of the week: Eight AAAs at S+120 last week — July had three all month

What does a world with CLO TBA look like?

You want US CLO triple-A exposure and you have a rough idea of the bonds that fit your profile. Or, you’ve suddenly turned bearish and would like to hedge that same portfolio. The age-old question is — how can you possibly trade generic US CLO triple-A risk?

Schrödinger’s CLOs — Serta ruling poses liquidated CLO dilemma as clock winds back to 2020

‘Having a seat the table’ during a live LME and obtaining favourable terms is exactly the position lenders want to be in. But the 2020 uptier of Serta Simmons loans underlines that sometimes, it pays to be on the outside looking in.

‘Investor' files complaint accusing CLO manager of mishandling collateral

Canaras Capital Management finds itself the subject of a complaint filed by a firm, which appears to be linked with a Venezuelan family office, in relation to a set of post-reinvestment CLOs. However, the firm’s founder and CEO Anthony Clemente has told 9fin that the claims are “frivolous”.

XAI and King Street make case for CLO sub-advisory change amid fierce Octagon pushback

XA Investments earlier this week (30 June) held a webinar asking shareholders to approve a significant restructuring of listed closed-ended fund XAI Floating Rate & Alternative Income Trust (XFLT) and interval fund XAI CLO & Income Opportunities Fund (OCTIX). This involves replacing sub-adviser Octagon Credit Investors — which has put up resistance — with Rockford Tower, a King Street Capital Management affiliate, broadening the funds’ investment mandate, and reducing management fees in a bid to revive performance.

AI warning signs, Part Two — It’s IPO o’clock, do you know where your credit returns are?

Japanese investors tilt towards European CLOs amid portfolio rebalancing

Greater integration and globalisation has not been the direction of travel for most of the world in recent years with Covid, energy market shocks and tariff escalations increasing barriers and shortening supply chains. So it’s refreshing to see a CLO market that is running counter to this theme with an investor base that spans the world.