NoChu return could be hampered by tough stips

nochu whale adobe 575
By Owen Sanderson
14 Apr 2021

CLO managers once happily sold huge volumes of triple-A securities to NorinChukin, sucking up the Japanese bank’s terms in return for a reliable anchor order which locked in their senior notes ahead of public syndication. The bank has been slowly running down its portfolio since it was forced to stop buying by its regulator, but if it comes back, it might find managers keen to preserve their flexibility and place their bonds elsewhere.

Reports suggest NoChu is once again looking at CLO deals, but three sources active in the European market said it had yet to commit to a European deal, and continued to run down its old portfolio through declining to participate in resets.

In the market this year, other triple-A ...

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