The best credit opportunity lies in middle-market collateralized loan obligation equity, according to Carlyle. “It is a newer market and not everyone’s investing and chasing that asset class,” said Lauren Basmadjian, the firm’s global head of liquid credit. “We’re seeing mid-to-high teens IRRs,” Basmadjian tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Mike Campellone in the latest Credit Edge podcast. That compares to 12%-13% internal rates of return from CLOs backed by broadly syndicated loans, she adds. Basmadjian and Campellone also discuss growing risk from liability management exercises, private/public debt convergence, default rates, M&A and European leveraged loan market opportunities.

<p>The best credit opportunity lies in middle-market collateralized loan obligation equity, according to Carlyle. &ldquo;It is a newer market and not everyone&rsquo;s investing and chasing that asset class,&rdquo; said Lauren Basmadjian, the firm&rsquo;s global head of liquid credit. &ldquo;We&rsquo;re seeing mid-to-high teens IRRs,&rdquo; Basmadjian tells Bloomberg News&rsquo; James Crombie and Bloomberg Intelligence&rsquo;s Mike Campellone in the latest Credit Edge podcast. That compares to 12%-13% internal rates of return from CLOs backed by broadly syndicated loans, she adds. Basmadjian and Campellone also discuss growing risk from liability management exercises, private/public debt convergence, default rates, M&amp;A and European leveraged loan market opportunities.</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

Carlyle Flags ‘High Teens’ Middle-Market CLO Gains

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/a0ebc559-708c-4002-80ce-b291010c121e/transcript

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