CLOs

CLO and ABS issuance continues apace as spreads remain tight

Antitrust prosecutors in New York seek to determine whether investors with an equity stake in the $1.3 trillion CLO market illegally coordinated as the underlying buyout debt was repriced.

The collateral is a portfolio of well-diversified, primarily senior secured leveraged European loans and bonds.

Managers of collateralized loan obligations are struggling to make the numbers work after high demand from investors enabled borrowers to squeeze their interest margins.

The proceeds will finance the portfolio, which trades in the primary and secondary loan markets.

The CLO will include a $500 million portfolio of first-lien senior secured leveraged loans.

Last October's structural reorganization prepped the firm for this year's volatility.

Despite market volatility, market execs say, CLOs may see another year of record issuance

Citigroup Inc. is structuring the so-called collateralized fund obligation, which will include both debt and equity portions.

1988 Asset Management has priced and closed $2.5 billion in CLOs in the U.S., and the partnership expects to issue CLOs regularly in Europe.

The strategy, which focuses on non-bank lending to sectors such as residential mortgages, credit cards and auto loans, has been a key plank of the bond giant's push into private lending.

Early signs are emerging that Trump-induced dollar volatility, inflated Treasury yields and fears about the country's debt burden are fueling a gradual reweighting toward the Old Continent.

The market for estate loans packaged into debt slowed dramatically after the Federal Reserve sharply raised interest rates in 2022.

Industry diversification and strong borrower financials bode well for CLO prospects in uncertain times.

Investing across the credit spectrum for more than three decades, through multiple credit cycles and disruptive market events, has given OHA unique insight, particularly in volatile periods.

Interest in CLO ETFs, an asset class that's only been around since 2018, is picking up, with the number of funds doubling since August to a total of 24.

Now the structured mortgage securities are cheap enough that CLO investors are watching them more closely, according to strategists and investors.

Over 85% of the collateralized loan obligation's total dollar value will be comprised of apartment complexes and hospitality and industrial properties.

The giant asset manager is launching new CLO funds that generate higher returns without significantly increasing risk–by focusing on the less-favored tiers of CLO stacks.

The fund closes ahead of separate news that it formed the Private Real Estate Credit platform, which will originate senior and subordinated commercial real estate loans.