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Investcorp debt boss eyes post-pandemic CLO 3.0 era

CLOs

Investcorp debt boss eyes post-pandemic CLO 3.0 era

CLOs structured in the post-pandemic world will see tighter documentation, but more flexibility on ratings, as the market adapts to the lessons learned through the Covid-19 crisis and ushers in a new ‘CLO 3.0’ era for the European market, according to Investcorp Credit Management boss Jeremy Ghose.

Other news

  • New UK insolvency law puts secured creditors in the firing line, Travelodge to be first test

    New UK insolvency law puts secured creditors in the firing line, Travelodge to be first test

    The new UK insolvency law, introduced into the British parliament on Wednesday, will allow unconsenting creditor classes, including secured creditors, to be crammed down during a restructuring. This could mean bondholders and banks, rather than landlords, take more of the pain in the coming wave of corporate distress. Hotel chain Travelodge is likely to be one of the first major companies to use the new rules.

  • Crisis Talk — with Dan Zwirn of Arena Investors

    Crisis Talk — with Dan Zwirn of Arena Investors

    In the special situations arena there are few situations quite as special as a global pandemic, and few opportunities quite as large for investment firms that manage to navigate the sell-off in corporate credit, bank loans, CLOs and securitizations correctly. GlobalCapital spoke to Dan Zwirn, founder, CEO and CIO of Arena Investors, and a 25 year veteran of distressed debt and special situations investing about buying free volatility, where to play in retail, and why the CLO market has much further to fall.

  • Euro high yield breaks new frontier with B- divi deal

    The slowly reopening European high yield market faced another test on Tuesday, following Sappi’s decision to pull its planned issue at the end of last week. Data centre and cable network firm Cogent raised a B3/B- rated add-on in order to pay a dividend. The company is too leveraged already to allow a dividend under its existing bond docs but used a “temporary deleveraging” and escrow structure to work around them.

  • Bridge book sales begin with Financière CEP buyout loan launch

    Bridge book sales begin with Financière CEP buyout loan launch

    JP Morgan and Nomura have started the syndication of the loan backing Bridgepoint’s buyout of French mortgage insurance broker Financière CEP, in a sign that market conditions have improved enough to fire the starting gun on the sale of loans underwritten before the coronavirus crisis shut markets.

  • Sponsors seen seeking competitors’ loans

    Sponsors seen seeking competitors’ loans

    Some financial sponsors are said to be trying to purchase loans from their competitors’ portfolio companies, as an opportunistic way to benefit from the coronavirus-driven disruption. But the European loan market’s restrictive transfer provisions make this a legal high-wire act.

  • Bankers baffled by FCA's aims in ancillary business probe

    Bankers baffled by FCA's aims in ancillary business probe

    Loans bankers are puzzled by a probe by the UK's Financial Conduct Authority into whether banks attached improper conditions to loans to companies during the coronavirus crisis. They are concerned the FCA could edge into criticism of the system of bank-client relationships that underpin modern corporate finance, and some believe this is already having an influence on how companies think about mandates.

  • UK Treasury extends CLBILS loan scheme to £200m

    UK Treasury extends CLBILS loan scheme to £200m

    The Treasury announced on Tuesday an extension to the Coronavirus Large Business Interruption Loan Scheme (CLBILS). From May 26 certain businesses can apply for loans up to £200m under CLBILS but there are restrictions on dividend payouts and management pay rises.

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Comment

  • Office reopening poses serious risks, with or without virus testing

    Without a vaccine for the coronavirus, it is clear that reopening offices is a serious risk for capital markets businesses. What firms need are strict distancing measures, facial masks and hand sanitiser — but also, crucially, access to frequent testing for the virus and the antibody.But that is a path fraught with difficulty.