CLOs

BHI has extended the revolving line of credit agreement with Lendbuzz to $50 million, and Janus' B-BBB Collateralized Loan Obligation ETF has surpassed $1 billion in assets.

With the Federal Reserve poised to cut rates as soon as September, investors poured $245 billion overall into active and index mutual funds and exchange-traded funds in the first half of the year, according to Morningstar Direct.

Electronification of trading could fundamentally alter loan and CLO markets.

The Carlyle US CLO 2022-4 transaction closed originally on September 1, 2022.

The loan portfolio has international diversification across industries.

The booming loan and CLO markets could face hurdles unless merger & acquisition activity picks up.

The anticipated losses follow a hit to investors in a U.S. CMBS last month. Buyers of the AAA portion of a note backed by the mortgage on a building in midtown Manhattan got less than three-quarters of their original investment back after the loan was sold at a steep discount.

KKR is buying CCC loans as they are "purged" from fund managers with less risk appetite. Since so much demand has been sucked out of the market, Sheldon and Reback said they believe some parts of the CCC markets are "oversold."

Much of that growth appears to have happened since the beginning of the year. JAAA's AUM was $5.3 billion at the end of 2023, suggesting a 94% increase.

The Japanese banking giant's sub foresees vibrant 2024 and expanding CLO interest from Asian investors.