At the end of Q1 we were surprised by the solid pace of supply in CLOs, especially considering the challenging arbitrage dynamics facing issuers.

They have been dating for some time, and been the topic of discussion at numerous dinner parties, even its good friend Covered Bond got hitched, but now RMBS has taken the plunge and tied the knot with Sonia (the Sterling Overnight Index Average), having finally ditched long-term previous partner, Libor.

Deoleo is a Spanish olive oil company that people will know from its brands like Bertolli. It’s long been considered to be one of the “idiosyncratic” stories in the European leverage loan market. The deal has an 85m revolver, a 55m second lien tranche and widely traded 460m senior secured tranche.

The end of 2018 and beginning of this year has been a tough time for credit, but it has also created an opportunity for CLO managers to invest in good companies at cheaper prices.

The Bank of England’s credit conditions survey for the first quarter of 2019 was released last Thursday, coinciding with an extended holiday period for many commentators, but certain sections made for interesting reading and are worth highlighting.

Chris Bowie outlines the highlights and lowlights for the fund, the successes and challenges, the triumphs and the odd sleepless night.

While there has been a rally in risk-off assets since January over coronavirus fears, credit markets have been largely resilient given strong technical demand, driven by huge inflows for bond funds and the wall of cash sitting on the sidelines.

Eoin Walsh, Partner and Portfolio Manager of the Select Monthly Income Fund provides an update on the fund.