CLO managers forced to ‘bite bullet’ at wider levels

Continued spread pressure in the US CLO market has forced managers completing deals in the past two weeks or so to swallow higher spreads to get their deals over the line, with many hoping they can take advantage of softness in the underlying leveraged loan market to make up for the wider print.
Credit Suisse, which priced Invesco’s Limerock III CLO on Thursday, was forced to widen the discount margins on the double-A and double-B tranches following movement in secondary and primary markets which spurred pressure from investors, market sources close to the
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