CLOs ditch riskiest tranche as markets widen

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By Owen Sanderson
29 Oct 2020

The ‘normalisation’ of the CLO market has stalled, with spreads for single-B tranches now at levels where issuing makes little sense, pushing many managers to retain these notes or print lower levered deals.

Hayfin dropped the planned €3.9m single B tranche in its Hayfin Emerald V CLO, priced on Wednesday, while Sculptor Capital Management and Napier Park opted to retain single-Bs. Two weeks before, in stronger market conditions, PGIM had structured a “delayed draw” single B.

Sound Point Capital and ...

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