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CLOs

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  • The European market for collateralised loan obligations could see €8bn-€12bn of new supply in 2014, according to experts at an industry conference in London on Tuesday. But while the buyer base is broadening and demand is increasing, regulation – in particular the Volcker Rule in the US – is continuing to put a dampener on market sentiment.
  • CELF Advisors and Credit Suisse priced Carlyle Global Euro CLO 2014-1 on Monday, with another CLO set to follow quickly, as 3i 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.
  • European CLO managers that brought new deals in 2013 shrugged off concerns about sourcing collateral and were in many cases able to ramp up CLO portfolios ahead of schedule, according to Standard & Poor’s.
  • European CLO managers that brought new deals in 2013 shrugged off concerns about sourcing collateral and were in many cases able to ramp up CLO portfolios ahead of schedule, according to Standard & Poor’s.
  • Joint arrangers on 3i Debt Management’s Harvest CLO VIII have put out price guidance for the deal, with CLO specialists confident that European demand will compensate for any drop-off in interest from US banks still hindered by the Volcker Rule.
  • Joint arrangers on 3i Debt Management’s Harvest CLO VIII have put out price guidance for the deal, with collateralized loan obligation specialists confident that European demand will compensate for any drop-off in U.S. interest as investors contemplate the implications of the Volcker Rule for CLOs.
  • Joint arrangers on 3i Debt Management’s Harvest CLO VIII have put out price guidance for the deal, with CLO specialists confident that European demand will compensate for any drop-off in US interest as investors contemplate the implications of the Volcker Rule for CLOs.
  • Borrowers, investors, private equity houses and banks voted in an open poll in November 2013 for the best banks in the emerging market syndicated loans market. Here are the results.
  • The Volcker Rule’s ban on banks from buying collateralized loan obligations that invest in high-yield bonds may force some managers to include more second lien loans—a smaller, less liquid market with lower recovery rates—in order to up the arbitrage to equity on new-issue CLOs.