Babson Capital Management is currently marketing its fourth CLO-related transaction since the beginning of the year, adding to the 50 plus CDOs it currently oversees. But some investors are wondering where the commitments are coming from, given the CLO sector's relatively limited investor base.
While Babson could not comment on planned issuance or its current investor base, Thomas Finke, president and head of Babson's bank loan team, noted that the firm has seen an increase in general interest in the loan asset class, given that it is trading at attractive yields. "In the CLO space, we have a market where deals can get done, but it is obviously difficult. We were fortunate to be one of those to do a deal in the first quarter." Finke declined to comment on the deal Babson is currently shopping.