Angelo, Gordon & Co. is liquidating a $240 million CLO that is set to expire and traders are anticipating an auction of loans from the portfolio this week. Officials at Angelo Gordon declined comment. Citibank was also slated to do an auction from its own book, a trader said. However, this deal has been pushed back until Angelo Gordon’s goes off so there would not be two simultaneous deals in the market, another trader said.
There have been a slew of portfolio auctions in the past few weeks. TCW and Sankaty Advisors both liquidated CLOs last week with the portfolios being sold above par. CLOs reaching the end of their reinvestment periods and the current high prices for loans are contributing factors.
Angelo Gordon has issued four CLOs including the latest Northwoods Capital IV (LMW 4/16). The deal that is being liquidated could not be determined by press time. Jeffrey Aronson and John Fraser are the leveraged loan managers.