The European Central Bank’s announcement last month of expanded economic stimulus has provided some welcome relief for the region’s CLO managers, allowing several to complete deals that had been in the works for months. After a slow start to the year, five collateralized loan obligations worth a combined €1.8 billion priced during the month of March, bringing the 2016 total to seven.
3i Debt Management was one of those managers; it priced the €413 Harvest CLO XV last week, some two months after the deal was launched. Jeremy Ghose, the firm’s managing partner and CEO, still has a cautious outlook for the remainder of the year, however. In a telephone interview with Asset Securitization Report, he warned that the current rally in European credit markets is likely to run out of gas, and the ensuing volatility will continue to make it difficult to securitize below-investment grade corporate loans and bonds.