The start of any new year often brings fresh hopes and expectations. Last year any positivity we had emerging from the pandemic was soon dashed by the sight of Russian tanks rolling into Ukraine.

The war there continues. And so does the battle against Covid. Meanwhile, interest rates are still rising, inflation is yet to be tamed, and fears abound that central banks will misjudge and mistime their actions, sending the world into economic crisis.

Yet I retain a lot of optimism and hope for 2023. In this report a number of my colleagues look at the year ahead for their particular areas of the market. A couple of recurring themes emerge.

  • The recalibration of credit markets in 2022 means many areas are now offering more attractive returns than a year ago.
  • Default risk appears to be higher than it was last January, and many of us expect volatility ahead. This makes many investors understandably fearful. But in risk lies reward; in volatility lies opportunity.

In this report we look at CLOs, structured credit, corporate credit in the US and Europe, direct lending and opportunistic credit.

The fact that we can give such wide coverage is a demonstration of how CIFC has grown over the past five years. We now have over $40 billion of assets under management.

Increasingly, our clients come to us looking for a multi-asset approach. We offer a professionally managed multi-asset strategy that works well for some. Others want something tailored to their own distinct needs. We can do that, too.

Occasionally clients who invest in a single strategy ask our opinion on how that fits within the rest of their current portfolio and approach. We are happy to have these conversations. We see ourselves as credit partners rather than suppliers.

In that spirit of partnership, I wish all our clients – and potential clients – a healthy and prosperous 2023. I hope the insights you find within this report will encourage and inform you. I am not sure we can do much about your health, but I hope we will be able to help enhance your wealth in the year ahead!

— Steve Vaccaro, CEO and Chief Investment Officer

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