CDOs/CLOs

Shareholders of XAI Floating Rate & Alternative Income should not support Octagon's removal as the fund's sub-adviser, Egan-Jones said, citing limited benefits to shareholders.

Octagon Credit Investors is sending letters to shareholders urging them to resist efforts to have it removed as the day-to-day manager for the XAI Floating Rate & Alternative Income Trust, a CLO closed-end fund.

First-loss risk prompts Ellington's migration to the mezzanine level, although some secondary-market equity gets thumbs up.

Nearwater Capital alums join competitors to service the financing industry niche, which will include CLOs sold to European investors.

All the loans are interest-only during both their initial and extension terms, but third-party secured overnight financing rate (SOFR) cap agreements provide interest rate protection.

The construction and building sector raises the most concern, but issues should remain manageable.

Hansen will oversee all the firm's finance and operations.

New CLO entrants surge this year, especially in Europe where the arbitrage is attractive.

The market for so-called collateralized fund obligations could top $30 billion of new volume this year, up 50% from last year.