Latest CLO/CDO news
Dutch musical theatre group Stage Entertainment, producer of shows including The Lion King and Mamma Mia!, debuted in the leveraged finance market this week for a €355m term loan to pay a dividend recapitalisation to sponsor CVC, after the latter’s majority investment in the firm in 2015 was unusually an all equity deal.
A number of new European CLOs are in the works, with European issuers taking advantage of positive momentum following the Global ABS conference in Barcelona last week to print new deals.
Brigade Capital is lining up for its debut European CLO, as GSO Capital printed a deal at a post-crisis record tight of 83bp over Euribor. But the sector could go tighter still, according to panellists and audience members at the CLO managers’ roundtable at the Global ABS conference in Barcelona on Wednesday. That’s important though, with underlying assets looking more expensive than ever.
UK buy-to-let deal Oat Hill No.1 and a pair of European CLOs were priced on Friday, as market participants prepared to descend on Barcelona for Global ABS, which kicks off Tuesday.
A strong run in the US CLO new issue market has seen $10bn of paper priced in each of the last two months, despite new issuance of leveraged loans.
US CLO equity holders are shifting their focus away from the low hanging fruit of refinancing transactions towards CLO resets, which give equity investors the benefit of longer reinvestment periods as well as cheaper liability costs.
CLO managers are preparing for a quiet summer as a barren leveraged loan market continues to dampen warehouse formation, while sources report equity investors are increasingly asking for a cut of managers’ fees as equity returns dwindle.
CLO managers are set to price two new European transactions in the coming days, joining a wave of European securitization issuers pumping out deals ahead of the Global ABS conference next week.
Japan's Norinchukin Bank is understood to have invested in US middle market CLOs for the first time, the latest chapter in the evolution of the bank’s CLO investing strategy, writes David Bell. It accompanies a growing surge of liquidity in middle market lending in what could be a breakout year for the sector.
Risk retention sponsors are hiring third party firms to help accurately value their horizontal strips of US CLO equity, although the growth of bank financing is also encouraging more managers to adopt the vertical approach to the regulation.
Go to GlobalCapital's Securitization data pages for our dealflow database, plus details of priced European and US CLOs and structured finance bookrunner league tables.
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|Rank||Lead Manager/Arranger||Total Volume $m||No. of Deals||Share % by Volume|
|1||Bank of America Merrill Lynch (BAML)||3,865||12||12.28|
Bookrunners of Global Structured Finance
|Rank||Lead Manager||Amount $m||No of issues||Share %|
|2||Bank of America Merrill Lynch||43,017.27||121||11.73%|
|3||Wells Fargo Securities||36,865.83||105||10.05%|