For the past few months, the CLO market has been quietly improving, with prices and performance tests looking up. However, the serenity ended late last week, when Texas Pacific Group said it would try to by assets in several collateralized vehicles for pennies on the dollar.

Now Citigroup, which owns $19.5 million in senior notes in the Tropic CDO V Ltd., a CDO containing assets TPG is trying to buy on the cheap, is attempting to block the private equity firm from what it calls an “improper” sale, according to Bloomberg.

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