- Corporate America has used the past few months to strengthen balance sheets and position itself to "ride out the storm" of the next 6-12 months or more.
- I feel more confident about CLOs and the underlying corporate loan market that supports it.
- Trends in corporate default rates, the pushed-out "maturity wall, and CLO "negative watch for possible downgrade" stats have all improved dramatically in recent months.
- A special shout-out to XFLT for its highly lucid and encouraging annual report that just came out a couple days ago.
For further details see:
High Yield Credit, Including CLOs: Risk/Reward Has Tipped In Our Favor