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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CLO managers in the US are rushing to price CLOs before the market shuts for Christmas, with five deals at various stages of marketing. -
The US CLO market has been to hell and back in 2020. From the depths of the March sell-off, the sector has faced huge challenges but has seen a remarkable comeback. Bullish sentiment is back on for Q4, and that defines the outlook for 2021. Not all managers will be well placed to take advantage, however, and a wave of consolidation probably looms. By Paola Aurisicchio.
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A wave of CLO refinancing has rolled out in the last seven days, as spreads on triple-A notes have tightened markedly. The trend, which bucks the pattern earlier this year when refinancing slowed, is set to continue early in 2021.
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Nick Jansa turns up at Canadian pension fund — Rocket man touches down at Citi — Credit Suisse hires Gaurav Arora
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Brian Good, a veteran of leveraged finance investing and a key figure in implementing ESG factors in investing process, is set to leave First Eagle Alternative Credit in early January, according to people familiar with the matter. Good will remain an ESG consultant at the Boston-based credit manager.
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Sculptor Capital Management has promoted managing director Josh Eisenberger to co-head of its US CLO team, overseeing portfolio management and credit underwriting, according to people familiar with the matter. Eisenberger will work alongside Peter Polanskyj, co-head of the US CLO team with a focus on structuring and origination.
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Golub Capital Partners has priced its second CLO eligible for funding under the Term Asset-backed Securities Loan Facility (TALF), a programme established by the US Federal Reserve after the Covid-19 crisis first hit. TALF expires at the end of the year, and will only have been accessed by Golub.
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CIFC Asset Management has priced the tightest post-Covid CLO with five-year reinvestment period, a deal which also includes the new more flexible language to allow managers to preserve value in distressed situations.
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Moody’s has put 188 CLO tranches issued by 114 US CLOs on review for possible upgrade, following a change in how its CLO methodology treats leveraged loans on negative watch. But the shift will make it harder to analyse CLO quality, as weighted average ratings will be dispersed more widely and documentation differences will become more important.
