Latest news
Latest news
The triple-A rated notes' spread widened by 25bp compared to the original deal
Spreads on CLO liabilities stay wide, making resets for deals from multiple vintages unattractive
Fund is designed to invest in the equity in Bain’s CLOs, but can also invest in liabilities
More articles
More articles
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Standard & Poor’s is anticipating a “steady stream” of CLO portfolio loan defaults through the remainder of this year as pre-crisis vintages exit their reinvestment periods, even as improving economies and investor appetite for corporate debt boosts credit quality. -
A legislative proposal to prevent banks’ divestiture of collateralised loan obligations is gaining new traction that could lead to a vote in Congress, as the five regulatory agencies enforcing the Volcker Rule remain silent.
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Intermediate Capital Group has made three hires as it seeks to expand its presence in the alternative structured credit market with a new dedicated team of investors.
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Intermediate Capital Group’s first European CLO of the year has provided further proof that real money investors in Europe are filling the void left by US banks, which have stopped buying CLOs until there is greater clarity on the US Volcker Rules.
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Intermediate Capital Group’s first European CLO of the year was priced at levels broadly in line with other European deals this year. Arranger Deutsche Bank increased the overall size of the deal by €75m to accommodate fervent investor demand.
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The European CLO primary market continues to make light of regulatory concerns that have caused a slowdown in the US market this year to date. Carlyle Group and 3i Debt Management printed deals at the start of the week, and Intermediate Capital Group is due to price St Paul’s IV CLO early next week.
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Three European CLO deals hit the market this week in quick succession, bringing the total number of deals priced this year to four, with several more waiting in the wings. But great uncertainty is hanging over the market while US legislators wrangle over the Volcker Rule’s treatment of CLOs, which is stymieing US bank investors who are increasingly looking to Europe as domestic spreads compress.
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CELF Advisors and Credit Suisse priced Carlyle Global Euro CLO 2014-1 on Monday, with another CLO set to follow quickly, as 3i Debt Managment is due to price its Harvest VIII CLO this week. Pricing of the Carlyle deal was considered tighter than the US as it complies with risk retention regulations and can therefore attract a wider audience.
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RBS has priced 3i Debt Management’s Harvest CLO VIII, taking this week’s European CLO supply to close to €800m. Intermediate Capital Group’s St Paul’s CLO IV is also expected to price by the end of the week as momentum builds despite lingering regulatory concerns.
