CDOs/CLOs

New collateralized loan obligation volume through Feb. 10 has already topped $3.2 billion with at least nine new deals in the pipeline, the LSTA reported. That adds to $4.8 billion in refinancing activity for the month, after two more refis were priced on Thursday.

CVC Credit Partners is marketing what is only the second new European collateralized loan obligation of the year.

In the past week, five new-issue collateralized loan obligations have been launched and/or priced by U.S. managers, after just one deal was arranged in the first two weeks of the year. The latest deals were placed by THL Credit Advisors, Sound Point Capital Partners, CIFC Management, Apex Credit Partners and Octagon Credit Investors.

Intermediate Capital Managers broke the ice on new CLO deals in Europe this week as it priced a new €400 million portfolio of broadly syndicated loans and high-yield bonds.

The U.S. CLO market is experiencing another rash of refinancings, defying expectations for a slow start to the year.

Blackstone/GSO is refinancing a European CLO originally issued in 2014, the €400 million Phoenix Park CLO D.A.C., according to Fitch Ratings.

A combination of loosened covenants, minimal call protections and aggressive, U.S.-style “dry powder” leveraging strategies have produced the most sponsor-friendly market for European leveraged loans since the financial crisis, according to a new report from U.S.-based Covenant Review.

Marble Point Credit Management of Greenwich, Conn. has acquired the CLO platform of American Capital Credit Management.

Institutional refinancing in the fourth quarter, and continued high investor demand, drove a 12% surge in year-over-year U.S. leveraged lending in 2016 to $875 billion.

Issuance of U.S. collateralized loan obligations is likely to get off to a slow start in 2017.