New CLO Managers Enter $1.3 Trillion Market, Betting on Recovery

  • 📰 BNNBloomberg
  • ⏱ Reading Time:
  • 40 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 19%
  • Publisher: 50%

Indonesia Berita Berita

Indonesia Berita Terbaru,Indonesia Berita utama

A flurry of hedge funds, direct lenders and others are expecting a revival of the $1.3 trillion collateralized loan obligation market — and they want to be ready to reap the benefits when it happens.

Buzzy new names in credit like Arini, the hedge fund set up by former Credit Suisse Group AG star trader Hamza Lemssouger, and Sona Asset Management have been marketing their first European CLO deals. In the US, several new managers have sold deals recently, while private lender Antares Capital sold its first deal backed by broadly syndicated loans in August. See table for deal details.

Profits have also been squeezed for CLO managers over the past year. The lack of M&A meant they’ve had to turn to the secondary market, where loan prices have been rising. That mismatch between loan and bond prices hurt the arbitrage opportunity for CLOs — the gap between the yields CLO managers can earn on the loans they buy, and what they pay to finance themselves with the riskiest securities they issue known as equity.

“The new CLO platforms are hopeful that when economic activity resumes and therefore new loan supply resumes, they will be fully ramped up to operate,” said Kos Vavelidis, a finance partner at DLA Piper. “Firms are taking steps now to build their platforms and their names in the market.”A key metric — CLO spreads — is already starting to improve.

Berita ini telah kami rangkum agar Anda dapat membacanya dengan cepat. Jika Anda tertarik dengan beritanya, Anda dapat membaca teks lengkapnya di sini. Baca lebih lajut:

 /  🏆 83. in İD
 

Terima kasih atas komentar Anda. Komentar Anda akan dipublikasikan setelah ditinjau.

Indonesia Berita Terbaru, Indonesia Berita utama

Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.

Canada's business community wants new defence posture for new cold warBusiness Council of Canada warns about cyber threats and 'weaponized' trade
Sumber: PGCitizen - 🏆 65. / 51 Baca lebih lajut »

Canada's business community wants new defence posture for new cold warBusiness Council of Canada warns about cyber threats and 'weaponized' trade
Sumber: BurnabyNOW_News - 🏆 14. / 77 Baca lebih lajut »