CLOs - All Articles

  • First European CLO switches to semi-annual payments

    Penta CLO 2 has become the first CLO to switch its coupon payment form three-month Euribor to six-month Euribor, according to Fitch Ratings on Monday, following the flood of underlying loan borrowers choosing to push payments onto the longer timeline.

    • 04.15 PM
  • CLO investors shift as banks make way for smaller buyers

    The Covid-19 pandemic has reshuffled the CLO investor base, with big bank buyers cutting their exposures, and insurers and mutuals gaining shares. Smaller pension funds and high net worth individuals have also entered the sector, tempted by the surprisingly strong performance of the asset class through the crisis period.

    • 19 Nov 2020
  • Middle-market deals set to fire up CLO primary

    At least two new middle-market CLO deals and two resets are being readied to open up a primary market that has been quiet since the end of October.

    • 18 Nov 2020
  • Canada-based manager gains SEC approval, buys Garrison CLOs

    Mount Logan Capital has acquired management rights to two middle-market CLO contracts from Garrison Investment Management. The asset manager disclosed the acquisition in an announcement and said that it paid $3m to take over the two CLOs together with “certain side letter agreements”.

    • 17 Nov 2020
  • Indiana pension fund invests $60m in CLO equity and debt tranches

    Indiana Public Retirement System has committed $80m to Oak Hill Advisors Structured Products Fund II to invest across CLO debt and equity tranches in the US and Europe in the secondary market, according to a board meeting document.

    • 16 Nov 2020
  • European CLO managers see 2021 primary slump

    The first quarter of 2021 is set to be a cautious opening for the European CLO market, with many banks still unwilling to open new warehouses, given the volatility of this year. Sources anticipate just five to six deals landing in the first quarter.

    • 16 Nov 2020
  • Jefferies, Kennedy Lewis commit $160m to TCW CLO business

    Jefferies and Kennedy Lewis Investment Management will invest $160m with asset manager TCW to boost the firm's CLO issuance program over the next two years.

    • 12 Nov 2020
  • CLO equity offers opportunity but few funds stand ready

    CLO equity is still a scarce commodity, despite better than expected performances from the asset class this year in the face of the pandemic. Some investment firms are said to be raising CLO equity funds, but others suggest it remains hard going, and managers with captive funds will remain in charge.

    • 12 Nov 2020
  • CLO pipeline builds but managers nervously eye defaults

    The fractious final phase of the presidential election has suspended CLO issuance since October 30. New issuance is expected to resume at steady pace through to the end of the year, but CLO managers say they are concerned about a new wave of defaults as the economy limps into 2021.

    • 11 Nov 2020
  • Blackstone to rename GSO credit unit

    GSO Capital Partners, the credit management arm of private equity giant Blackstone, is rebranding itself as Blackstone Credit, the company announced this week.

    • 10 Nov 2020
  • Ex-Ares trio launch CLO management business

    A trio of former Ares Management executives have launched a CLO management business with a particular focus on environmental, social and governance (ESG) investments.

    • 09 Nov 2020
  • Wells Fargo slashes award winning CLO research desk

    Wells Fargo has laid off its prolific CLO research team led by David Preston as part of a decision at the bank to revamp its approach to fixed income research, according to people familiar with the matter. The US banking giant is searching for a new head of ABS and CLO strategy, according to a job posting published on Thursday by executive search firm The Ladders.

    • 05 Nov 2020
  • CLO market waits for dust to settle before deal flow restarts

    As Tuesday's vote count looks likely to drag into Thursday without a clear winner in the US presidential race, the CLO space is likely to remain stalled through next week after managers raced to get ahead of the US election to price around $13bn of deals in October.

    • 04 Nov 2020
  • Market pushes back on STS lobby proposals for CLOs

    The Alternative Credit Council (ACC) has recommended allowing CLOs to obtain a ‘simple, transparent and standardised’ (STS) certification to increase the flow of funding to European borrowers. Investors have pushed back on such proposals, however, citing the heavy due diligence needed to invest in STS deals.

    • 04 Nov 2020
  • CIO of structured credit investor Medalist steps down

    Medalist Partners has parted ways with CIO Brian Herr, who stepped down as CIO and co-head of structured credit and asset finance to take up a role as managing director at financial services company Exos.

    • 03 Nov 2020
  • Kayne Anderson, Napier Park price new five year CLOs

    Kayne Anderson Capital Advisors and Napier Park Global Capital each priced CLOs on Friday with pre-Covid reinvestment durations, joining a growing roster of managers that have returned to more normal CLO structures. Though they are becoming more frequent, sources say they expect the market to remain split between standard and Covid-era deal formats.

    • 02 Nov 2020