Big and wide or small and tight? A choice in CLOs

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By Will Caiger-Smith
10 Jul 2014

CLO managers in the US face a choice between pricing huge deals like Credit Suisse Asset Management’s $1.036bn Madison Park XIV CLO, or keeping their transactions smaller in order to achieve tighter pricing, said bankers.

Amid a global search for yield, strong demand for triple-A CLO paper and CLO equity has allowed managers to price larger transactions, with the average deal size increasing to $531m in the first half of 2014, according to law firm Appleby — a 14% increase on the second ...

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