New CLOs seeded as managers split old warehouses in two

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By Paola Aurisicchio, Tom Brown
20 Aug 2020

US CLO managers are working through a backlog of warehouses opened before the Covid-19 pandemic by splitting the facilities in half to buy back some equity and issue new deals. While in Europe, managers are tweaking deal documentation in preparation for new transactions.

The formation of new warehouses is picking up as spread levels tighten, allowing managers to start the CLO incubation period. New warehouses will pave the way for future CLO issuance, although volume still remains very low, sources say.

Wells Fargo, in a report published in August, estimated that ...

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