Recently added
21 April
Why the CLO Market Has Remained So Resilient
Collateral Quality, Structural Design, Manager Skill, and Market Timing
The panel reflects on the remarkable resilience of CLO issuance through COVID, inflation, and geopolitical shocks. David Altenhofen credits strong underlying collateral performance, the locked-in funding structure of CLO technology, and increasing manager dispersion. Shiloh Bates highlights how natural buyers emerge when loans trade at discounts and how post-COVID pull-to-par dynamics generated strong equity returns. Peter Polanskyj adds that the absence of a true fundamental credit crisis, combined with persistent demand for spread, has underpinned continued issuance. The session closes with thanks to the audience.
21 April
Loan Market Dynamics and Asset Spread Outlook
Bifurcation, Private Credit Redemptions, and Supply Constraints
The panel analyses what could cause leveraged loan spreads to reprice. Peter Polanskyj observes a bifurcated market where fundamentally challenged loans are repricing while the broader market remains tight, driven by persistent yield demand. Shiloh Bates notes that redemption pressure in private credit BDCs and interval funds may slow loan demand growth and potentially widen spreads, while reduced LBO activity from software sector concerns could constrain new loan supply, creating a structural mismatch.
21 April
AAA Spreads and the Drivers of CLO Liability Pricing
Non-Standardisation, Regulatory Dynamics, and Institutional Demand
The discussion turns to why CLO AAA spreads have not tightened as much as other parts of the capital structure. Peter Polanskyj argues that non-standardised documentation creates a structural floor on AAA yields relative to more commoditised ABS products. David Altenhofen adds that rising interest rates have reduced the relative attractiveness of CLO AAAs for European pension funds compared to domestic alternatives like Danish mortgage bonds, dampening demand at the top of the stack.
21 April
Relative Value Across the CLO Capital Structure
Where Investors Are Finding Opportunity in Today's Market
The panel debates where relative value sits across the CLO capital structure. David Altenhofen favours triple B and double B tranches in Europe but notes primary markets are sluggish and secondary single Bs are unattractive. Peter Polanskyj argues for an up-in-quality bias toward IG tranches, citing unpriced fundamental risks at the bottom of the stack and compressed spreads between private credit and BSL AAAs. Shiloh Bates highlights private credit CLO double Bs as his top pick, offering around 12% yield with strong historical default protection.
21 April
Evaluating Tail Risk Across BSL and Private Credit CLOs
Loan Pricing, LMEs, and the Case for Private Credit Structures
Shiloh Bates provides his perspective on assessing tail risk, explaining that secondary CLO buyers primarily rely on loan market pricing to adjust for risk in distressed positions. He contrasts broadly syndicated and private credit CLOs, highlighting that private credit avoids lender-on-lender violence and liability management exercises, offering cleaner restructuring dynamics. While it may be too early to draw firm conclusions, he notes that over the past five years private credit has outperformed BSL on a credit loss basis.
21 April
Manager Tiering and Sector Concentration Risk
How Healthcare and Software Headwinds Are Reshaping the Manager Landscape
David Altenhofen discusses how monthly manager rankings inform investment decisions and how the traditional view of conservative managers — typically overweight software and healthcare — has been challenged. Both sectors have faced significant headwinds, causing some previously tier-one managers to lose that status. The conversation extends to the chemical sector, where European chemicals may be relatively better positioned than Chinese peers due to differing energy dependencies, though significant uncertainty remains.