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Bailey McCann, Opalesque New York:

Another wave of mid-year investor letters and performance updates have made their way to investors, and Opalesque inboxes. One theme has emerged within the credit managers space, which we have reported on steadily this week - as spreads tighten the opportunity set for these managers still seems ripe.

"Spread tightening has been consistent over the year," said Chris Acito, Gapstow Capital Partners CEO/CIO in a call for media today. "This has been especially true for longer durations."

Chenavari Investment Managers, Chenavari Toro fund is also continuing its steady climb posting a gain of slightly over 2% in June and over 18% year to date, according to an investor letter. In the letter, Chenavari echoed the thought that spreads have tightened, which makes economic recovery stories like the one in the UK more compelling.

Both men note that despite a common refrain about inflation and interest rate concerns, neither seem to be on the rise any time soon. "If you were long credit at the beginning of this year, things have been good," Acito said.

"We are relatively sanguine about the markets over the next six to twelve months. We expect to continue our interest in new issuance CLOs through the remainder of the year and into 2014. We also see a strong bid for legacy structured credit, CLOS and Trust preferred CDOs."

Chenavari noted that new mortgage und......................

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