Gloves off in US CLOs as refi crunch forces concessions

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By Will Caiger-Smith
23 Apr 2015

As risk retention looms, equity and triple-A US CLO investors at loggerheads over the value of refinancing options are forcing managers to make unwanted concessions.

After a glut of deal pricings during March, issuance of new CLOs is expected to drop sharply, thanks to a lack of primary supply in the leveraged loan market and looming risk retention rules.

That means triple-A CLO spreads are heading south, having already moved to around 130bp ...

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