Global CLO league tables - April 2020 YTD
Global CLO league tables - April 2020 YTD

Who’s got the moves US: oil and gas leads renaissance for US CLO managers
The US leveraged loan market has held steady over the last two weeks. After rising to just below 87 of par in mid-April, the S&P LSTA US Leveraged Loan index closed at 85.75 to start this week

New slate of US CLOs shows evolving term curve
Three new CLOs are forthcoming from Partners Group, Gulf Stream Asset Management and Onex Credit Partners with each manager opting for a different reinvestment strategy  

'Nochu covenant' leaves big CLO managers in a trading bind
Stipulations pushed into CLOs by the world’s largest CLO investor Norinchukin to limit its exposure to covenant-lite loans are causing headaches for managers on its approved list hoping to use the dislocation to build par  

OC health check: first senior breach in middle market pushes CLO tally to 13
41 CLOs have breached an overcollateralisation test in the last week, according to the latest trustee reports on CLO-i, taking the overall total to 182

ArrowMark prices static US CLO as spreads drift wider
ArrowMark Partners has priced a static US CLO with triple As at 250 basis points, matching the print from GSO's Stratus Funding 2020-1 (another static deal) at the start of April

CLO market braces for another wave of loan downgrades
A wave of negative rating actions swept the leveraged loan and CLO market in April. “Companies will look to secure incremental capital which will lead to further rating pressure,” says Philip Raciti, portfolio manager and head of US performing credit at Bardin Hill Investment Partners

ArrowMark markets static US CLO
ArrowMark Partners is working with Goldman Sachs on a static US CLO, according to market sources

CLO fund warns it may suspend stock distributions in Q3
Oxford Square Capital Corp today announced it may reduce or suspend stock distributions for the months of July to September as a result of the crisis triggered by the coronavirus pandemic

OC health check: failures lift above 100 as five more deals breach senior test
Another 116 CLOs have breached their overcollaterisation tests in the last week, according to the latest trustee reports on CLO-i. Out of this, five deals have failed OC tests for all classes – bringing the overall tally of deals that have breached senior OC tests to nine.

PGIM prices three-year US CLO via BNP Paribas as covid-era limitations ease
PGIM has priced the second new issue CLO to run a three-year reinvestment period following the market dislocation triggered by the coronavirus pandemic

Seven points basis opens up in CLO triple Bs - but Investcorp trades well to defy trend
Triple B rated tranches once again swamped the secondary CLO market yesterday and trading levels suggest the basis between bonds on negative watch/outlook versus those not subject to a downgrade is about seven points

Moody's joins Fitch and S&P in CLO negative watch camp as it acts on 976 tranches globally
Moody’s has put tranches from 358 US CLOs and 39 European CLOs on review for downgrade, in an announcement that places 976 tranches (859 in the US 117 in Europe) at risk of losing their original rating

Experienced CLO official departs Pretium after two years
A CLO and loan portfolio manager has departed Pretium Partners, according to market sources, just under two years after his arrival

Yes they Canyon: west coast manager joins group of post-covid 19 CLO issuers
Canyon Capital has joined the exclusive group of managers to price a new issue CLO amid the crisis stemming from the coronavirus pandemic

Redding Ridge and Natixis reunite for second new CLO in a month
Redding Ridge Asset Management, the CLO manager affiliated with Apollo Global Management, has priced its second CLO of the month, becoming the fist manager to issue two new transactions following the coronavirus selloff in March

OC health check: another two CLOs fail senior OC tests
Two senior overcollateralisation test failures number among 26 deals joining the list this week of CLOs breaching their OC tests in April, according to the latest trustee reports on CLO-i.

If history repeats itself, the best CLO play could be to hold equities
After a futile scramble for liquidity, LyondellBasel filed for bankruptcy in the early morning hours of 6 January 2009. Bad luck for CLO managers that were holding the loan? Not at all

Eagle Point cuts dividend payments on listed CLO equity fund
Eagle Point Credit Company has slashed its divident payment by 60% to eight cents a share, down from 20 cents a share, following losses to net asset value in the first quarter as a result of the coronavirus pandemic

We start again: loan crash sparks move to short-dated CLOs
After 12 years, the CLO bull run has come to an end. But these things were built to withstand massive shocks, so there’s no time to panic. Rather, it’s time to kick off 3.0s with static deals.

Two US CLOs fail senior OC tests
Apex Credit Partners and Marathon Asset Management have become the first CLO managers in the 2.0 era with deals failing their senior overcollateralisation tests, according to latest trustee reports on CLO-i

AGL prices novel CLO with ability to reinvest would-be equity distributions
AGL Credit Management has become the fourth manager to issue a new CLO following the coronavirus-triggered sell-off

Two senior credit officials leave Global Atlantic
Global Atlantic has parted ways with two senior members of its credit team, including its head of credit investments

Secondary CLO debt trades well but Trace suggests CLO equity trading at 12 cents
A variety of CLO paper was in for the bid yesterday with US secondary CLO volumes reaching $281 million, and European volumes hitting €74 million

Beneath the triple C: $31.6 billion of CLO credits feel downgrade pain
March madness took a toll on CLOs as Moody’s and Standard & Poor’s downgraded 4.25% of the portfolios in the US and 1.84% in Europe to triple C or below in just one month (some of these were already triple C rated, only to fall further).