John S. Hintze

The solar industry has made significant strides, and the related ABS market should continue under its own momentum, providing investors with attractive returns.

Amid reduced M&A activity, U.S. middle-market borrowers and investors in asset-backed securities are trying to reset and figure out where the right valuations levels are, says Sengal Selassie, CEO of Brightwood Capital Advisors, a lender and issuer of CLOs.

Questions remain around switching benchmarks that could result in unexpected refinancings

High hopes for 2022 crashed when Russia invaded the Ukraine, which left hundreds of aircraft stranded in Russia. But sector consolidation could lead to more deals.

The drop in CLO issuance from Q1 volume raised no alarms, coming off last year’s record $187 million issuance, and experts see strong production for 2022.

Despite perceptions that smaller companies are riskier, they pose less risk to investors. Realized loss rates are lower, and they deliver higher returns.

CLOs technically fall under the new disclosures and prohibitions for private-fund umbrella, but do not appear to be the proposed rule’s intended target.

The U.S. economy is relatively insulated from the events unfolding in Eastern Europe. Western Europe may be affected indirectly by higher energy prices.

The amendments effectively broaden the rule’s impact to include fixed-income securities, prompting several major industry groups to address SEC Chairman Gary Gensler.

There are few safe investments today, and as inflation shows the biggest increase in 40 years, one opportunistic investor blasts CLOs’ risk versus returns.