3i and Babson return to Europe but rigid prices threaten success

By Tom Porter
17 Jul 2014

3i Debt Management and Babson Capital Europe loaded themselves into an already crowded European CLO pipeline this week, fuelling optimism among CLO bankers who are eyeing 2014 issuance of over €12bn. But as primary market prices on senior bonds remain stubbornly around the 135bp mark, concerns remain over the effect of a strengthened loan market on overall returns.

3iDM has hired HSBC to arrange its Harvest X CLO, which will be its third euro denominated transaction of the year. Its €425m Harvest XIII and €525m Harvest IX were both the largest 2014 deals to date at the time they were priced, in February and June, respectively.

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