European CLOs restart with caution, while US issuance picks up

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By Owen Sanderson, Paola Aurisicchio
30 Apr 2020

The European CLO market is back in business, a few weeks on from the restart of primary issuance in the US. Both markets are moving cautiously to get back on track in the pandemic economy, tweaking deal formats, shortening reinvestment periods and looking at deal documents to see where there is room for flexibility to manoeuvre through a historic period of distress.

In the European market, new deals were priced on Monday from Permira Debt Managers and Redding Ridge Asset Management, followed quickly by KKR Credit on Tuesday. But the market backdrop looks very different, with new issues shorter, less levered, and much more expensive than the last pre-virus trades. ...

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