CLOs winning repricing race with loans

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By Owen Sanderson
23 Feb 2021

CLO liability spreads are tightening faster than leveraged loans can reprice, boosting the arbitrage available for managers hitting this window and encouraging others to rush into the market where possible.

A flurry of recent CLO prints in Europe show senior liabilities well through their pre-Covid levels, and pushing close to a post-2008 record. Permira Debt Managers issued Providus V at 80bp on Friday, through Jefferies (the first deal for the new team there), while GSO’s reset of Darty ...

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