US CLO equity outperforms

US CLO equity outperforms
US CLO Equity cashflows average 15.2% across 1,038 BSL transactions that have had four payment dates in 2021, according to a report from JPMorgan CLO research analysts. This is the highest since 2016, which averaged 19.6%.

CLOs that were reset in 2021 fared best with a 22% average return driven in part by a small minority that included an observed principal payment. “The utilisation of resets may boost returns situationally, but is increasingly blurring the lines between manager performance and equity dynamics,” the JPM analysts note.

The report identifies the top 10 managers by cashflow in 2021 as AIG, Golub, Elmwood, Goldentree, CarVal, Fortress, Canyon, Pretium, Angelo Gordon, and Anchorage. The analysts also highlight that middle market CLO performance also improved this year with the economic recovery – 2021 equity payouts averaged 22.5% compared to 19% in 2020.

In other news…

EMEA

Twelve Capital prepare for future growth with the introduction of a new organisational structure. The day-to-day management of the firm will now be led by Marcel Wildhaber and Nils Ossenbrink as co-managing partners. The pair will also head the group management committee, overseeing all areas of business operations including distribution and client services. Additionally, the firm has established an Investment Oversight Committee, chaired by executive chairman and CIO Urs Ramseier. The reorganisation will allow for the firm to maintain focus on company performance generation as well as client orientation.

North America

Tikehau Capital has appointed John Fraser as partner and new chairman of its Global Structured Credit Strategies. John will join the alternative asset management group’s New York office from Investcorp, where he sat as an independent member of the board of directors. He will oversee global structured credit strategy across Europe and the US as the firm seeks to expand its existing structured credit business with further CLO issuance, having launched its first North American CLO in September this year.

Fahd Basir has joined alternative investment platform Yieldstreet as md, capital markets, based in New York. He was previously senior advisor at Prytania Asset Management, which he joined in April 2018. Before that, Basir worked at 25 Capital Partners, Atlantic Asset Management, UBS and Bank of America.

 

US CLO equity outperforms

US CLO equity outperforms

Category: ABS CLOs CMBS

Monday 8 November 2021 16:22 London/ 11.22 New York/ 00.22 (+ 1 day) Tokyo

Sector developments and company hires

US CLO equity outperforms
US CLO Equity cashflows average 15.2% across 1,038 BSL transactions that have had four payment dates in 2021, according to a report from JPMorgan CLO research analysts. This is the highest since 2016, which averaged 19.6%.

CLOs that were reset in 2021 fared best with a 22% average return driven in part by a small minority that included an observed principal payment. “The utilisation of resets may boost returns situationally, but is increasingly blurring the lines between manager performance and equity dynamics,” the JPM analysts note.

The report identifies the top 10 managers by cashflow in 2021 as AIG, Golub, Elmwood, Goldentree, CarVal, Fortress, Canyon, Pretium, Angelo Gordon, and Anchorage. The analysts also highlight that middle market CLO performance also improved this year with the economic recovery – 2021 equity payouts averaged 22.5% compared to 19% in 2020.

In other news…

EMEA

Twelve Capital prepare for future growth with the introduction of a new organisational structure. The day-to-day management of the firm will now be led by Marcel Wildhaber and Nils Ossenbrink as co-managing partners. The pair will also head the group management committee, overseeing all areas of business operations including distribution and client services. Additionally, the firm has established an Investment Oversight Committee, chaired by executive chairman and CIO Urs Ramseier. The reorganisation will allow for the firm to maintain focus on company performance generation as well as client orientation.

North America

Tikehau Capital has appointed John Fraser as partner and new chairman of its Global Structured Credit Strategies. John will join the alternative asset management group’s New York office from Investcorp, where he sat as an independent member of the board of directors. He will oversee global structured credit strategy across Europe and the US as the firm seeks to expand its existing structured credit business with further CLO issuance, having launched its first North American CLO in September this year.

Fahd Basir has joined alternative investment platform Yieldstreet as md, capital markets, based in New York. He was previously senior advisor at Prytania Asset Management, which he joined in April 2018. Before that, Basir worked at 25 Capital Partners, Atlantic Asset Management, UBS and Bank of America.

 

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