CLOs

The fund, Sound Point Meridian Capital, invests in CLO equity. Fewer than 10 of these closed-end funds trade now, partly because starting one requires a backer willing to leave the money invested for years.

The change in tone was obvious on Monday, when SBA Communications Corp. postponed the repricing of a $2.3 billion term loan.

The pension plan's investment is a show of support from one of the world's largest private markets investors for the securities.

There's been a resurgence of interest in CLOs. Gross issuance is on track for a record year in Europe, while year-to-date issuance in the market has already exceeded 2023's full-year volume.

BHI has extended the revolving line of credit agreement with Lendbuzz to $50 million, and Janus' B-BBB Collateralized Loan Obligation ETF has surpassed $1 billion in assets.

With the Federal Reserve poised to cut rates as soon as September, investors poured $245 billion overall into active and index mutual funds and exchange-traded funds in the first half of the year, according to Morningstar Direct.

Electronification of trading could fundamentally alter loan and CLO markets.

The Carlyle US CLO 2022-4 transaction closed originally on September 1, 2022.

The loan portfolio has international diversification across industries.

The booming loan and CLO markets could face hurdles unless merger & acquisition activity picks up.