LCM Asset Management raised a US$407.6m CLO in November that pays Triple A investors 140bp over Libor, that tied for the tightest spread of a non-static deal this year, according to LPC Collateral data. CLO Triple A slices paid 142bp November 28 compared to five-year, non-agency Triple A spreads of 57bp, according to Wells Fargo data. The largest and most senior piece of the CLO, the Triple A slice, can also offer investors higher coupons than similarly rated investments.
TRACCIATO METRO 4 MILANO PLUS
The debt slices pay investors a set rate plus Libor, so as the benchmark rises, those holders' distributions will increase.įed Chair Janet Yellen said in November 17 testimony before the Congressional joint economic committee that a rate increase could become appropriate "relatively soon." Steady volume may be supported by investors seeking refuge in floating-rate assets as a hedge to rising rates.ĬLOs pool loans of different credit quality and sell slices of the fund of varying seniority, from Triple A to B, to investors such as insurance companies. "For logistical reasons, I think we can expect to see very few additional CLOs price this year that will target closing dates prior to the US risk-retention rule effective date," Festa said. Invesco priced a CLO December 1 that is scheduled to close December 21, according to LPC Collateral data.
.svg_.png "tracciato metro 4 milano")
While there is no set time frame between when a CLO prices and its closing, it generally takes three to four weeks, according to Deborah Festa, head of law firm Milbank, Tweed, Hadley & McCloy's West Coast securitization and investment management practices. "We think January and February may be slower than the average month." "We have probably seen some issuance from January and February that was moved into November and December as try to close deals ahead of the risk-retention deadline," said Bjarni Torfason, a CLO analyst at Deutsche Bank.
Monthly issuance of the funds, the biggest buyers of leveraged loans, has been increasing, rising to a 2016 high of US$10.6bn in November from US$8.4bn in October, according to data compiled by Thomson Reuters LPC Collateral.
0 kommentar(er)
