Analysts warn on softer spreads, as Deutsche tees up Tralee III

golf tee
By Will Caiger-Smith
30 Jun 2014

As Deutsche Bank continues preparing new CLOs for Par-Four Investment Management and Crescent Capital, the US CLO market seems impervious to the summer slowdown that is taking hold in other securitized products. But increased issuance this year could come at the cost of softer spreads in the higher reaches of the capital stack unless the investor base deepens, said analysts.

Deutsche is preparing Par-Four’s Tralee III CLO — named after an Irish golf course — this week, with pricing targeted in the next fortnight, according to a person familiar with the transaction. It is also working on a new CLO for Crescent Capital, the person said. Elsewhere, Citi ...

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