Arbitrage This While yields for middle market loans have generally contracted over the past four years, the cost of triple-A liabilities for middle market CLOs has been range-bound at L+175, about 25-50 bps higher than their BSL equivalents. MM Loans vs. MM CLO AAA Spreads… Subscribe to Read MoreAlready a member? Log in here...
Two-Bit Performance While two quarters does not a full year make, CLO issuance for 2Q this year will be the best second quarter in loan market history. That would beat 2007’s record of almost $33 billion, when annual volume hit just under $105 billion…. Subscribe to Read MoreAlready a member? Log in here...
Outer Banks US banks have surrendered share of the institutional loan market to their shadow selves for decades, but CLO’s, hedge funds, finance companies, and other institutional funds are poised to finish the job in the wake of increased regulation. Primary Market for Highly Leveraged Loans… Subscribe to Read MoreAlready a member? Log in here...
CLO 1.0, 2.0, 3.0…and Counting Loan securitization managers are sprinting to print new vehicles ahead of implementation of risk retention rules which are likely to inhibit future CLO formation. Sources: Thomson Reuters… Subscribe to Read MoreAlready a member? Log in here...
Coming Attractions Lower interest rates have this year pushed cash into junk bond mutual funds and out of loan funds, though the velocity for both is slowing. Additional Sources: S&P, Forbes… Subscribe to Read MoreAlready a member? Log in here...
Oh, That Default The long-awaited default of Energy Future Holding’s$19.5 billion in loans, while pushing April’s figure by volume to 4.6% – a four-year high – is not expected to signal any change in analysts’ positive loan performance outlook. … Subscribe to Read MoreAlready a member? Log in here...
Par for the Course Softness in market technicals has driven loan prices for new-issue leveraged loan paper below par for the first time in six months, perhaps signaling better times for investors. … Subscribe to Read MoreAlready a member? Log in here...
Taper Vapor The Fed’s continued reluctance to predict rate increases anytime soon, leaves Treasury yields range-bound while fixed income investors party on… Subscribe to Read MoreAlready a member? Log in here...