Insurance companies swoop on junior CLO debt as fast money holds off

Investmentspreads_Fotolia_230x150
By David Bell
17 Jul 2017

Long term investors such as insurance companies and pension funds are buying more mezzanine and junior CLO debt as spreads compress. Meanwhile, asset managers and hedge funds appear to be taking more defensive positions in what they say has become a rich market.

The move from long term investors such as insurance companies and pension funds into lower rated CLO debt has priced out asset managers and hedge funds, according to two buyers speaking with GlobalCapital on Monday.

“Triple-Bs in new issue deals stand out — the curve is not inverted ...

Please take a trial or subscribe to access this content.

Contact our subscriptions team to discuss your access: subs@globalcapital.com

Or sign up for a trial to gain full access to the entire site for a limited period.

Free Trial

Corporate access

To discuss GlobalCapital access for your entire department or company please contact our subscriptions sales team at: subs@globalcapital.com or find out more online here.