US non-bank investors increase CLO buying

SEC
By Will Caiger-Smith
27 Mar 2014

The CLO market proved its resilience to regulatory challenges this week by churning out at least three new deals, with more in the pipeline. But significant challenges are lurking beneath the positive sentiment — the SEC has launched a probe into the product, and some smaller bank investors are nervously eyeing their CLO holdings because of uncertainty around the Volcker Rule.

New deals from GSO/Blackstone and Trimaran Capital Partners could soon push issuance on from the more than $20bn of CLOs that have already been sold this year, and there are several more transactions in the pipeline behind them.

Middle-market CLOs are also heating up, with Fifth Street Finance ...

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