Short end interest spurs new CLOs, Volcker liquidity crunch looms

As corporate treasuries and money managers show more interest in refinanced deals, CLO managers are looking to take advantage by selling new deals with short reinvestment and non-call periods. Increased short-end interest could be positive for bank investors hoping to be refinanced out of non-Volcker compliant deals, but as a liquidity crunch looms, all investors in those deals are at risk, say analysts.