U.S., Euro Investors Buy $1B in CLOs
June 22, 2009
Several collateralized loan obligations, totaling approximately $1 billion, have been sold to buyers in the Europe and in the U.S., according to Dow Jones.
These buyers were attracted to these CLOs, which were all rated triple-A or double-A, because of recent rally in the loan market and because many of the loans could be bought at steep discounts.
The Standard & Poor’s/Loan Syndications and Trading Association Leveraged Loan 100 index hit a high for the year on June 15, with a year-to-date return of 34.7%. For the second quarter of 2009, the index has seen a 20.4% return.
Some triple-A-rated loans have been trading in between the high 70s to high 80s, while some double-A-rated loans have been trading 45 and 65 cents.
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