We want to welcome a new name in the debt market news, 9fin!

We are also delighted to be featured in their article “CLO hedge funds return over 20% on average in 2023”. It is an excellent summary of the 2023 performance for CLO funds; see the performance table (here). We share with you an extract from this article:

Crystal Funds portfolio manager Olivier Gozlan said tightening at the end of the fourth quarter of 2023 from a mark-to-market point of view accounted for around 60% of his funds’ strategies’ performance. CLO resets of large positions in 2023 also contributed, Gozlan added. 

“When the war in Ukraine started in 2022, many people thought the crisis would be a matter of weeks but by May/June the market realised it was going to be for a long time,” he said. “There was a wave of new deals in the summer being issued for risk management of the warehouse with debt issued at a large spread and we raised money at the time for this specific opportunity.”

Gozlan says the firm was able to deploy at this efficient entry point, for example investing in single-Bs in the 1,500 DM. “Today spreads are 900bp, so the price effect is material,” he added.

The full article can be found (here).