SME CLOs not coming back soon, says Scope

CLOs
By Graham Bippart
22 Apr 2015

Improving lending conditions, an increase in loan supply and investor appetite are not enough to get the moribund market for small to medium enterprise CLOs off the ground, something European policymakers have held as a top goal in revving the continent’s economic recovery.

The public market for SME CLOs vanished in 2008 and has yet to return, said Scope Ratings analysts Sebastien Dietzsch and Carlos Terré in a report published on Thursday. Regulatory capital charges and liquidity coverage ratios do make SME CLOs less attractive to real money investors, though tightening ...

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