High demand for euro CLO collateral fuels US loan recycling

Green_bottles_Alamy_230x150_12Oct2019
By Tom Brown
12 Dec 2019

The amount of exposure to US loan collateral in European CLOs has climbed to as high as 30% for some newly issued deals, as newer managers “recycle” US collateral into euro transactions.


US collateral in European deals – either denominated in euros or dollars -- are included to add diversity to a CLO, in addition to potentially offering better relative value than European leveraged loans. But by increasing the amount of US collateral in European CLOs, managers typically will be ...

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.