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GC Asia
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Shenkman returns to CLO mart after 2020 absence
Shenkman Capital has returned to the CLO market after skipping issuance during 2020, pricing a deal named Romark CLO IV through its affiliate Romark Credit Advisors.
02.45 PM -
Lower default rate boosts CLO credit quality
The credit quality of CLOs has strongly improved since April 2020, with default rates and watchlist exposure falling rapidly, Fitch said this week.
15 Apr 2021 -
CLO pipeline remains robust, shrugs off April payments pause
A flurry of deals is expected to hit the CLO market with managers, such as Sculptor, MJX, First Eagle and Carlyle, among others, set to issue new deals or reprice legacy deals.
14 Apr 2021 -
NoChu return could be hampered by tough stips
CLO managers once happily sold huge volumes of triple-A securities to NorinChukin, sucking up the Japanese bank’s terms in return for a reliable anchor order which locked in their senior notes ahead of public syndication. The bank has been slowly running down its portfolio since it was forced to stop buying by its regulator, but if it comes back, it might find managers keen to preserve their flexibility and place their bonds elsewhere.
14 Apr 2021 -
CLO reissues resurface with Canyon
Alongside the rush of refi and reset activity, a third form of CLO refinancing is once again emerging, with Canyon Capital choosing to reissue a 2015 CLO as a new $420m deal called Canyon CLO 2021-2.
13 Apr 2021 -
Head of US CLO syndication leaves Deutsche Bank
Head of US CLO new issue syndication David Ryan has left Deutsche Bank after 17 years working at the bank.
12 Apr 2021 -
Pension funds eye riskier CLO tranches
A growing number of pension funds are turning their attention to the riskier part of the CLO capital stack in search of extra yields, attracted by the risk-adjusted returns offered by CLO equity and mezz, compared with other fixed income asset classes.
08 Apr 2021 -
Reset wave helps NoChu cut CLO book
Record levels of resets in the CLO market on both sides of the Atlantic are helping NorinChukin Bank, once the anchor investor for many triple-A tranches, slim down its investment portfolio in the asset class. Fortunately, new big buyers are stepping up at the top of the capital structure, and on less onerous terms than NoChu demanded.
08 Apr 2021 -
CLOs can preserve investment flexibility despite growth of ESG limits
CLOs have 'by nature' a limited exposure to the industries commonly excluded under ESG criteria, meaning their investment flexibility will be preserved, despite the exclusions appearing in more and more deal documents. This bodes well for the growth of ESG screening in the US CLO market, which has lagged behind other markets, with only 10 deals so far featuring the language, according to Deutsche Bank.
07 Apr 2021 -
Michigan pension fund allocates to Kayne's CLO fund
The State of Michigan Retirement System has recently disclosed a new commitment to a CLO fund, signaling that more pension funds are turning their attention to the CLO market, attracted by its fast recovery.
06 Apr 2021
CLO/CDO
