Latest news
Latest news
Lower pricing across CLO capital structure does little to improve equity arbitrage
Manager tightens triple-A pricing by 27bp and avoids refinancing some junior mezzanine notes
Spread on triple-A rated notes 4bp wide of recent tights
More articles
More articles
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UK buy-to-let deal Oat Hill No.1 and a pair of European CLOs were priced on Friday, as market participants prepared to descend on Barcelona for Global ABS, which kicks off Tuesday. -
A strong run in the US CLO new issue market has seen $10bn of paper priced in each of the last two months, despite new issuance of leveraged loans.
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US CLO equity holders are shifting their focus away from the low hanging fruit of refinancing transactions towards CLO resets, which give equity investors the benefit of longer reinvestment periods as well as cheaper liability costs.
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CLO managers are preparing for a quiet summer as a barren leveraged loan market continues to dampen warehouse formation, while sources report equity investors are increasingly asking for a cut of managers’ fees as equity returns dwindle.
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CLO managers are set to price two new European transactions in the coming days, joining a wave of European securitization issuers pumping out deals ahead of the Global ABS conference next week.
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Japan's Norinchukin Bank is understood to have invested in US middle market CLOs for the first time, the latest chapter in the evolution of the bank’s CLO investing strategy, writes David Bell. It accompanies a growing surge of liquidity in middle market lending in what could be a breakout year for the sector.
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Risk retention sponsors are hiring third party firms to help accurately value their horizontal strips of US CLO equity, although the growth of bank financing is also encouraging more managers to adopt the vertical approach to the regulation.
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A flood of European CLO paper washed through the primary pipeline in the past week, with issuers across asset classes flipping the switch following a lull in the wider euro ABS market.
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A flood of capital into the US middle market is fuelling a rise in CLO issuance, with the product also set to expand into Europe for the first time.
