LevFin

European CLO market adapts to the challenges of the COVID-19 era


The period since March has been a turbulent time for financial markets, and the CLO sector in Europe dealt with a complex set of disruptions when the pandemic arrived this spring. From sudden and acute stress at the corporate level, to an unprecedented shift in working conditions, CLO players in Europe experienced uncertainty not seen since the last crisis. Yet, the market has adapted, and while the shape and size of deals may be different, CLOs in Europe are pushing ahead. BNY Mellon and GlobalCapital gathered market experts to discuss the present state of the European CLO market and its prospects.

European CLO market adapts to the challenges of the COVID-19 era

Other news

  • EQT launches Cerba buy-out loan

    EQT launches Cerba buy-out loan

    EQT has launched the €1.525bn loan leg of the buy-out funding for its purchase of Cerba Healthcare, a France-based chain of medical laboratories, indicating that the flow of acquisition deals is still running fast, with multibillion deals including Birkenstock and Lonza Specialty Ingredients closing last week, and G4S slated for this week.

  • World Peace slices CP portion on refi

    World Peace slices CP portion on refi

    Taiwan’s World Peace Industries Group has returned to the market for a NT$18bn-equivalent ($645m) refinancing deal. The fundraising includes a commercial paper guarantee tranche that has seen some changes due to scrutiny from the regulator.

  • Sritex bonds plummet after missed payment

    Sritex bonds plummet after missed payment

    Indonesian textile manufacturer Sri Rejeki Isman (Sritex) has seen its dollar bonds fall to new lows in the secondary market, as investors grapple with the company's missed debt payment.

  • New issue CLOs turn to fully syndicated equity

    New issue CLOs turn to fully syndicated equity

    New issue CLOs are increasingly selling equity to multiple buyers, leaving no single investor with a majority position — signalling an end to the difficulties of last year, which saw managers without their own equity or committed partners struggle to come to market.

  • Tullow Oil dodges restructuring, aims to break free of RBL crunch points

    Tullow Oil dodges restructuring, aims to break free of RBL crunch points

    Tullow Oil is marketing a new $1.8bn senior secured bond to repay its near-term maturities and cancel its reserve-based lending facility entirely, ending the twice yearly cycle of RBL determinations that has pushed some oil explorers close to the edge since the coronavirus pandemic struck.

  • New London IPO offers exposure to shipping recovery

    New London IPO offers exposure to shipping recovery

    Taylor Maritime Investments, a new London investment trust, has launched an IPO on the London Stock Exchange with the aim of offering investors a chance to invest in the recovery of the global shipping industry after the Covid-19 pandemic.

  • Mars Capital sells Irish risk as Arrow buyout heats up

    Mars Capital sells Irish risk as Arrow buyout heats up

    Mars Capital, now a subsidiary of Arrow Global, has probably sold controlling positions in two Irish reperforming loan portfolios, securitized in RMBS transactions Grand Canal 1 and 2, with the Grand Canal 1 portfolio rapidly returning to the market in a Morgan Stanley-backed deal announced on Wednesday. The move comes as TDR Capital’s bid for Arrow heats up, with shareholders now ready to vote on approval.

  • WhiteStar eyes acquisition candidates in European CLO build-out

    WhiteStar eyes acquisition candidates in European CLO build-out

    WhiteStar Asset Management’s expansion into London could include the purchase of an existing CLO platform, according to chief executive Gibran Mahmud. The Texas-based firm, run by the former Highland Capital Management team, announced last week that it had opened a London office headed by executive chairman Gordon Neilly.

  • MM CLO market set to follow BSL issuance frenzy

    MM CLO market set to follow BSL issuance frenzy

    Middle-market CLO issuance is set to accelerate towards the hectic pace set by broadly syndicated loan deal, driven by the large primary backlog and attractive market spreads. Top tiers managers are expected to issue more middle-market (MM) CLOs throughout this year and smaller managers are coming back to the market with their first deals of the year.

  • BNP Paribas hires levfin head for Germany

    BNP Paribas hires levfin head for Germany

    BNP Paribas has hired Boris Funke as head of leveraged finance capital markets in Germany, giving him responsibility for expanding the bank's sponsored and corporate sub-investment grade franchise in the region.

  • Russian relief as Segezha completes IPO

    Russian relief as Segezha completes IPO

    Segezha, the Russian paper and pulp company, has completed its IPO on the Moscow exchange. The conclusion of the listing was a relief for the company, given fears that it could have been derailed by political tensions between Russia and the US.

  • IFC doubles Agricole risk transfer, expects wave of EM deals

    IFC doubles Agricole risk transfer, expects wave of EM deals

    Crédit Agricole has struck a new synthetic risk transfer deal with the International Finance Corporation, in which it will shed about 90% of the risk on $4bn of emerging market trade finance loans. The IFC expects to use securitization more to help banks in developing countries cope with the effects of the coronavirus pandemic.

  • Trafigura records largest ESG-linked US PP

    Trafigura records largest ESG-linked US PP

    Commodity trader Trafigura has closed a $203.5m US private placement. It is the largest sustainability-linked issue on record, according to GlobalCapital analysis, and signals the PP market is taking ESG financing more seriously.

  • Eagle Point hires CLO debt trader from Good Hill

    Eagle Point hires CLO debt trader from Good Hill

    Eagle Point Credit Management has added Sam Yoon to its CLO investment team to assist in CLO debt trading and portfolio management. Yoon will report to Dan Ko, principal and portfolio manager at Eagle Point.

LevFin News Archive

Comment