Many smaller managers of consolidated loan obligations are finding they don’t need the deep pockets and wide reputations of bigger players to bring new deals to market.
In the first year of life, a human baby triples its body weight. In 2012, the year that in some ways marked the true rebirth of U.S. collateralized loan obligations, new issue CLO volume quadrupled, to more than $55 billion from roughly $13 billion in 2011. Take that, human babies.
The $1.83 billion term loan B making the rounds for iStar Financial carries something that both the company and leveraged loan investors are likely to be pleased about, a BB- credit rating from Standard & Poor’s.
There’s a funding gap in Europe’s loan market, and creative asset management firms would rather not mind it. They prefer to jump right in.
Buyers of European junk bonds are winning battles for more disclosure from the issuers and banks they enter into deals with, but they haven’t won the war.
Moving up the CLO manager league tables over the last year has had more to do with acquiring existing collateralized loan obligations, or their managers, than issuing new deals.
Countless municipalities, pension funds and hedge funds are conducting inquiries into losses and preparing lawsuits and financial bloggers are condemning the apparent fraud committed by bank employees, but one group can’t seem to summon up much outrage over the Libor scandal...
Despite first-half volume that bested 2011’s total and was well beyond the midway point of even optimistic projections for this year, participants remain somewhat cautious about how many more deals the market can absorb in the second half...
If you were hoping to wake up on July 1 to world different from that of the first half, or from 2011 for that matter, you may want to go back to bed...
Issuance of European CLOs may be stalled, but 3i Debt Management believes that once the macro-economic picture improves, these structured finance vehicles will resume their role as important players in the region’s loan market...
