Record year for CLO refis as managers look to revamp Covid deals

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By Paola Aurisicchio
14 Jan 2021

This year looks likely to set records for CLO resets and refinancings, as managers call deals priced since the coronavirus pandemic began with wide spreads and expensive capital structures. Tightening spreads have also brought some 2018 and 2019 deals into refi or repricing territory, setting up a record year with as much as $78bn in refinancing and $115bn in resets, according to estimates from Deutsche Bank. Paola Aurisicchio reports.

Tighter spreads across the capital stack going in the new year have encouraged CLO managers to reprice certain tranches of CLOs. The original rise of refinancings in December was focused on fixed rate tranches, but a strong pipeline has recently emerged to refi floating rate tranches from older ...

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