CLOs

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.

Martin Silver, 65, pleaded guilty in April, admitting that he conspired to defraud investors by overvaluing distressed loans and creating bogus documents and fake loans to hide losses.

Healthcare companies used to be some of the safest to lend to during economic downturns, until private equity firms bought them out and larded them with debt.

The structured finance specialist sees opportunities to expand the CLO investor base with the product, as the CLO-driven funds win over other sponsors.

With the addition of AIG's CLOs, Blackstone will have around $51 billion of such assets under management, just edging past Carlyle Group Inc.