Loan repricing accelerates but can CLOs keep up?

CLOs
By Owen Sanderson, Tom Brown
16 Jan 2020

Some of the largest issuers in the leveraged finance universe are repricing their loans, cutting 50bp or more from their margins on the back of strong market conditions and proven performance since the loans were raised. That is putting pressure on CLO managers and equity holders, whose liabilities are tightening too, but more slowly, blocking repricing of the bonds and squeezing returns, write Owen Sanderson and Tom Brown.

Nouryon and Refinitiv were the biggest LBOs of 2018, and sit among the top holdings for CLOs of the post-crisis era. A study from Moody’s showed these names in 223 and 187 European CLO 2.0 issues, respectively, with only 14 companies forming larger holdings.

Refinitiv repriced its euro ...

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.