Reset wave helps NoChu cut CLO book

By Owen Sanderson
08 Apr 2021

Record levels of resets in the CLO market on both sides of the Atlantic are helping NorinChukin Bank, once the anchor investor for many triple-A tranches, slim down its investment portfolio in the asset class. Fortunately, new big buyers are stepping up at the top of the capital structure, and on less onerous terms than NoChu demanded.

NorinChukin was once by far the largest buyer of CLO triple-As in dollars and euros alike, effectively anchoring the whole market in the first months of 2019, as it recovered from the jitters of late 2018. The Japanese bank amassed more than $70bn in the asset class, earning ...

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