Collateralized loan obligations face a second straight year of equity losses, according to Eagle Point Credit Management, a major buyer. “Where we stand right now, it’s certainly possible,” Tom Majewski, the $14 billion private-credit manager’s founder and managing partner, says in this episode of the Credit Edge podcast, when asked about the chance of negative returns. “While there were some credit problems, oddly the bigger issue was the bull market and repricing of loans,” Majewski tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Reto Bachmann. They also discuss software-loan stress, business-development-company turmoil, lower returns in significant risk transfers and how Eagle Point is diversifying into hard assets like midmarket infrastructure lending.

<p>Collateralized loan obligations face a second straight year of equity losses, according to Eagle Point Credit Management, a major buyer. &ldquo;Where we stand right now, it&rsquo;s certainly possible,&rdquo; Tom Majewski, the $14 billion private-credit manager&rsquo;s founder and managing partner, says in this episode of the Credit Edge podcast, when asked about the chance of negative returns. &ldquo;While there were some credit problems, oddly the bigger issue was the bull market and repricing of loans,&rdquo; Majewski tells Bloomberg News&rsquo; James Crombie and Bloomberg Intelligence&rsquo;s Reto Bachmann. They also discuss software-loan stress, business-development-company turmoil, lower returns in significant risk transfers and how Eagle Point is diversifying into hard assets like midmarket infrastructure lending.</p>

The Credit Edge reviews the top credit news of the week and looks at the week ahead, with in-depth research of the most important corporate sectors, trends and themes. Analysis of specific corporate bonds and credit default swaps is backed by Bloomberg Intelligence's robust data sets and indexes.

<p>The Credit Edge reviews the top credit news of the week and looks at the week ahead, with in-depth research of the most important corporate sectors, trends and themes. Analysis of specific corporate bonds and credit default swaps is backed by Bloomberg Intelligence's robust data sets and indexes.</p>

The Credit Edge by Bloomberg Intelligence

Bull Run in Loans Slams CLO Equity Buyers, Says Eagle Point’s Majewski

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