Widening in US CLOs takes toll on equity

The US CLO market took a turn for the worse this week, with new issue spreads widening and a large proportion of secondary market bid lists failing to trade. Illiquidity in CLOs and a widening in the underlying leveraged loan market is now causing problems in the primary market, particularly for equity investors.

  • By Will Caiger-Smith
  • 02 Oct 2014
Just under $1.4bn worth of CLO bid lists had made their way into the secondary market by Thursday afternoon. The recent finalisation of liquidity coverage ratio (LCR) rules is one reason behind more structured product trading — most structured products are ineligible as high quality assets in the ...

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GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 Bank of America Merrill Lynch (BAML) 7,026 25 11.95
2 Citi 6,449 21 10.96
3 BNP Paribas 5,093 18 8.66
4 Barclays 4,040 11 6.87
5 Lloyds Bank 3,615 14 6.15

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
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  • Today
1 Citi 110,142.00 315 13.01%
2 Bank of America Merrill Lynch 95,965.47 280 11.34%
3 Wells Fargo Securities 81,461.44 248 9.63%
4 JPMorgan 58,998.35 186 6.97%
5 Credit Suisse 44,382.59 136 5.24%