This staple in the CLO calendar will usher in the new year with plenty of in-depth CLO content including detailed explorations of the SOFR transition and the development of ESG in the CLO market.2021 was a year of record issuance from CLO managers and great returns for CLO investors.
Can that success be sustained in 2022 as well? Our mission is to help you answer that question and identify, explore and source opportunities by providing a deep focus on the asset class. Get deals done and achieve your investment goals by participating in the various networking opportunities throughout the day that will allow you to forge industry connections with your colleagues in the CLO space.
Agenda08:15 - 09:00EDT
Registration & Breakfast09:00 - 09:15EDT
Welcome09:15 - 10:10EDT
Panel: State of the CLO market
After a record-breaking twelve months what does the new year have in store for the CLO market? Solid macro-economic conditions and rising interest rates should set up another great year for the industry, but technical challenges from SOFR to ESG lie in wait for the unwary investor. Our panel of experts will reflect on the past twelve months and look ahead across 2022 as they discuss topics including:
10:10 - 10:30EDT
- How will projected interest rate rises impact relative value?
- Does the continued rise of captive CLO equity funds spell the end of third-party majority equity investors?
- How many more managers will join the CLO game in 2022, and how many can the market realistically sustain in the long term?
Fireside chat: Dispatches from the CLO trenches
Two of the top lawyers in the market sit down with Creditflux to discuss what they’ve been seeing recently. What new features are making it to the table, and what are investors pushing back on in the docs this month?10:30 - 11:10EDT
Panel: SOFR transition
The CLO market may be ahead of the curve on the Libor to SOFR transition, but that doesn’t mean everything will be plain sailing. How robust is the language in new deals? Are legacy deals ready for the transition? And with the loan market transition lagging behind, what impact will asset/liability mismatches have on CLO performance?11:10 - 11:50EDT
Networking | One-to-one meetings11:50 - 12:20EDT
Fireside chat: The impact of inflation and interest rates
As inflationary pressures grow so do the likelihood of further interest rate rises. Chris Padgett and Al Remeza from Moody's Investors Service join us to discuss what this means both for the loan market, and for CLO liabilities themselves. How will sub-investment grade companies fare over the next couple of years, and what does that mean for CLO performance? And will we see a particularly large impact on bond-heavy flex CLOs and CBOs?12:20 - 13:00EDT
Panel: ESG & CLOs
The incorporation of ESG considerations into deal language is another area where CLOs have pushed ahead of other fixed income products. Our panel of ESG champions will both reflect on that progress, and look ahead at future challenges. What are LPs pushing for? How should managers develop robust ESG methodologies in a world without agreed standards? And what does the new European Sustainable Financial Disclosure Regulation (SFDR) mean for US CLOs?13:00 - 14:00EDT
Lunch14:00 - 14:45EDT
Panel: Allocating to structured credit
Despite many years of outperformance structured credit continues to be a minor strategy for most institutional investors. Our panel of expert allocators will talk us through how structured credit in general, and CLOs in particular, fits into their portfolios. How do they deal with the complexities of the asset class? Do they target particular products like CLOs, or prefer a broader structured credit mandate? How do they approach manager selection? How do they get boards comfortable with acronyms? And what will it take to move CLOs out of alternative assets into general fixed income buckets?14:45 - 15:15EDT
Fireside chat: The changing face of CLO valuations
From the emergence of ESG criteria to the transition to SOFR, new developments in the CLO market are changing the way investors approach pricing and valuation. In this fireside chat Creditflux and PricingDirect discuss their latest research on how CLO investors are thinking about both their allocations to CLOs and the valuation of their holdings.15:15 - 15:45EDT
Networking break15:45 - 16:15EDT
Masterclass - CLO equity trading
Dedicated permanent capital vehicles for CLO equity may be making all the headlines, but behind the scenes the secondary market is as active as it’s ever been. How should investors think about trading equity paper in these volatile times? Veteran investor Debdeep Maji, Senior Managing Director at Oxford Funds, leads this masterclass on the different playbooks needed for each vintage and environment, how the calculation changes for short-dated equity, and what rising rates will mean for equity returns.16:15 - 17:00EDT
Panel: Would you buy it?
Four top CLO funds walk us through their investment process as they consider our CLO investment case studies. From relative value to manager due diligence, what are the key questions every CLO investor should ask before they buy?17:00 - 18:00EDT
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