European CLOs push for €5bn with cov-lites on rise

stephen schwarzman
By Tom Porter
04 Jun 2014

Blackstone/GSO and Pramerica are vying to take European CLO 2.0 supply over €5bn this year as the asset class continues to exhibit strong performance, with risk appetite pushing up the proportion of cov-lite loans in portfolios.

Cov-lite loan buckets now range from 20% to as much as 50% in European CLO 2.0 portfolios, said Fitch on Wednesday. 

The increase comes as the credit quality of recent vintage cov-lite loans is moving in the other direction, falling from B to B/B-, which the ratings agency said ...

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