MDC

@debt_serious @kieranwgoodwin Risk retention applies to PC CLOs, so the BDC would hold the junior tranches

@kieranwgoodwin Hm, who will be holding equity and mezz of that CLO though?

@chipperPat Okay good, glad to hear that

@ClarkinM At least two folks have started own funds last 1-3 years from there. Could have been a sign they would down. Good fund.

Going through some 13F's, did Indaba shut down? One of my favorite funds to sift through their holdings, hope the best for the team there.

@KingslayerCap Newtyn, Madison Avenue Partners and Rangeley are my other favorites

@ClarkinM What other funds do you check out?

@rogercfr @YetAnotherValue @accrued_int Or could be used to consolidate the industry, simpler to merge it away or be an acquirer, not sure. But Roberts still has control, haven't heard that aspect discussed much around the name

@rogercfr @YetAnotherValue @accrued_int Get the parent's valuation up? It's just a hypothesis, could be wrong and they're truly going to be operated separately, just a thought I had

Podcast #376 is up! @accrued_int on $VSNT and the evolving media landscape yetanothervalueblog.com/p/accrued-inte…

@YetAnotherValue @accrued_int Also, PGA Tour has a new CEO and business model (switched to for-profit), could be really bad for Golf Channel when their deal comes up

@koalaman1993 @junkbondinvest @grok CLOs have a lot of capacity to buy primary loan issuances

@ClarkinM @junkbondinvest @grok explain the connection and ramifications here

Two mega LBO financings launching this week. > EA at $15.5B. > Sealed Air at $7.2B. $22B+ in new leveraged debt. The banks need this to clear. The market doesn’t care what the banks need.

@LeylaKuni It does trade

“It’s called a CLO, T. 
We lever it 10:1 and keep the equity… and since there’s no market for it,
we mark it ourselves. Beautiful thing”

@stoked_on_waves Still don’t like BDCs, but the hate has gone too far here

@stoked_on_waves I thought about deleting that, don’t want to read my slop from 14 years ago

full circle for @ClarkinM to pitch cheapo bdc now :) clarkstreetvalue.blogspot.com/2012/11/be-cau… clarkstreetvalue.blogspot.com/2026/03/though…

@GlobalMktObserv 80+% of CLOs are broadly syndicated loans, not private credit

⚠️US banks have nearly ~$300 billion in exposure to private credit: Wells Fargo leads with $59.7 billion in loans to private credit funds, BDCs, and CLOs. BDCs are publicly traded funds that give retail investors exposure to private lending, while CLOs are bundles of leveraged loans packaged and sold to institutional investors. This is followed by Bank of America at $33.2 billion and PNC at $29.5 billion. JPMorgan, which recently marked down software-linked loans and curbed lending, has $22.2 billion in exposure. The risk is concentrated in "back leverage," where private credit funds borrow against their portfolios to boost returns from ~8-9% into double digits. If banks pull back, funds lose the leverage that made their returns attractive, giving investors even more reason to exit. Meanwhile, the Office of Financial Research estimates total private credit fund borrowing could be as high as $345 billion, and warns that reported figures may underestimate true leverage. The nearly $2 trillion industry is already facing record redemption requests, defaulting borrowers, and AI-driven markdowns on software loans. Private credit funds are now even facing pressure from the banks they usually relied on.

@brentmuio There are only a handful of CLO failing their most junior OC test (and none that are in their reinvestment period), there’s zero stress at the top of the stack

@ClarkinM Of course not, never ceases to amaze me how misunderstood CLOs are by even sophisticated credit people

@trading_2win Maybe? I’ll be the first to admit I’m not accurate at predicting deals that fall apart, but Bill Smith knows the business pretty intimately, guessing he has a good sense of what he’s getting himself into

@ClarkinM Does this affect the merger, though? Could there be something in the announcement that might delay it? Why didn’t they issue a press release earlier, once it was clear they wouldn’t hit the earnings date they’d already announced? Very strange

Not a great look to set an earnings date and miss it, but you can now buy the $GDOT NewBank for under 0.5x book

@CaveManDrawing @SpecialSitsNews There’s not enough loan supply to keep up with CLO demand

@CaveManDrawing @SpecialSitsNews They usually correct quicker than this but now that most of the large managers have captive equity funds, they’ll issue new CLOs even when the current arbitrage doesn’t make a lot of sense. For example, last year was a record issuance year, this year is ~9% ahead of last YoY

CLO equity payments have been falling every quarter for the past 2 years $OXLC $ECC