CVC Credit Partners European Opportunities - Floating rate advantage in 2022

Despite the COVID-19 challenge, 2021 was a good year for CVC Credit Partners European Opportunities (CCPEOL). NAV total return was 12.2%, outperforming the high-yield debt indices. While the manager remained positive throughout 2021, the portfolio closed the year more defensively – the credit opportunities basket was 49% of gross assets versus 67% in February and 55% in July. Management is nevertheless encouraged by the supportive economic outlook, the floating rate nature of leveraged loans and active corporate loan debt markets. CCPEOL’s dividend yields are 4.7% and 5.1% on its sterling and euro shares, respectively.