GSO fund adds double B CLO positions

GSO’s Carador Income Fund put in a 0.4% rise in net asset value in June, according to its latest published monthly report. The vehicle, which was previously known simply as Carador, has been active in the secondary CLO market in recent weeks. Carador sold its holdings of the class B tranche of Foxe Basin 2003, a CLO which is also managed by GSO. The manager did not disclose the sale price, but says the original single A bond was sold for a price 3% above the level it had marked the position.

Carador dipped down the capital structure to add two new bonds that were originally rated double B. It recently bought some of the class E notes of Westbrook CLO, a strongly performing 2006 CLO managed by Shenkman Capital Management, as well as the class E notes of Symphony CLO IV. According to the report, the manager remains a buyer of suitable mezzanine and subordinated CLO bonds, and plans to continue to swap out of its current positions to fund purchases.