Single-B tranches return to European CLOs

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By Tom Brown
13 Jul 2020

European CLOs are once again being marketed to investors with single-B tranches, after widening spreads forced most managers to exclude them from recent deal structures. Hayfin Capital Management has mandated Goldman Sachs for its fourth deal in Europe, roadshowing alongside CBAM’s Montmartre Euro CLO 2020-2, with both deals offering single-B notes.

Spread levels have come back from wides seen in the wake of the Covid-19 outbreak, which drove fears of principal losses for bonds at the lower end of the capital structure. Many managers opted for marketing deals without a single-B tranche on offer in the months since the ...

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