CLO pipeline builds but managers nervously eye defaults

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By Paola Aurisicchio
11 Nov 2020

The fractious final phase of the presidential election has suspended CLO issuance since October 30. New issuance is expected to resume at steady pace through to the end of the year, but CLO managers say they are concerned about a new wave of defaults as the economy limps into 2021.

At least one large manager is putting a deal together to go to the market in early-mid December, looking to hopefully price triple-A notes at 135bp, while another manager is assessing market conditions to decide whether or not to price before the end of the year.

The pre-election pipeline ...

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