Portfolio managers are trying to assess the damage the repricing tidal wave has inflicted on their funds, with most dreading what their returns will look like once the water recedes, while other say the damage will be light.
“Repricings will absolutely hurt the performance of closed-end funds and CLOs, as well as the formation of new CLOs,” said a New York-based investor, representing those with the former outlook. “Sadly, the underwriters are once again going to try and squeeze as much out of investors as they can. It’s almost as if they cannot help themselves. They can’t actually. History has shown that.”