CLOs

The senior, triple-A rated notes, which is in the A-1B class, are expected to have a 210 basis point spread, with a 38% credit enhancement level.

In a sign of how Japan's influence has grown, its regional banks have become a go-to buyer in the $1.3 trillion market — an important source of financing for junk-rated U.S. companies.

Demand for AAAs is still challenged as banks, the biggest buyers, are facing too much uncertainty and volatility around their balance sheets.

Despite dearth of new loans, retail investors' exit from loan funds provides CLOs with new-issue supply.

BlackRock's Financial Markets Advisory group has been selling off securities over the last two weeks, including pieces of collateralized loan obligations, commercial mortgage bonds and niche asset backed debt.

Deal supply remains relatively strong in the sector, but new originations still face a scarcity of new assets to roll into the deals.

The deal's total leverage is 11.25%, subordination is 13.14%, it has a WA cost of debt of 2.35%, and a WA spread of 3.49%, excluding floors.

Regulators saved lenders from a proliferation of banking issues in response to Silicon Valley Bank's collapse—and cemented the virtues of the borrow-lend strategy of CLOs.

The move to shutter the lines of credit for future collateralized loan obligations — so-called warehouses — comes as BirchLane winds down and returns cash to its investors.

Lenders and borrowers have just a few months to negotiate how they're going to ditch the disgraced Libor benchmark in the leveraged loan market, and time is of the essence.