Investments

Deal finds lower pricing and adds a new class of AAA notes.

The fund will invest in the riskiest tranches of bonds backed by leveraged loans.

Higher charges for BB bonds would only marginally impact CLO market.

Tighter spreads are expected as floating-rate demand continues.

Nonagency issuances are expected to increase 85% for this year over 2023, and rise another 36% in 2025, the second best since the financial crisis.

Offshoot of well-known European asset manager taps JP Morgan to structure deal

Fitch describes the Goldman-arranged CLO as similar to Blackstone's Lewey Park CLO, which closed last month.

Franklin Templeton Investments Chief Executive Officer Jenny Johnson said she's concerned that some investment- and non-investment-grade private credit assets are trading at the same spreads as traditional fixed-income investments like corporate bonds.

The "greenium" spread is not economically feasible for bond issuers anymore, T. Rowe Price's Matt Lawton said.

Economic forecasts include the possibility of higher inflation and slower growth that could stall future cuts to the federal fund rates.