CLO mandate goes to rival bank after lengthy auction process

By Michael Peterson

Friday, December 19, 2008

A rival bank has taken over as manager of a 2006 balance sheet-style CLO after the original manager decided to auction the mandate

Subscriber-only article

This article is available only to Creditflux subscribers and free trial users within 30 days of publication.

Already a subscriber? Not logged in? Click here to login.

If you have not already done so,
you may request a FREE TRIAL by clicking here

This trial will give you:
  • 4-weeks' free online access to our
    most recent subscriber-only articles
  • Daily breaking news alert sent by email
  • A print copy of Creditflux

If you currently have a free trial, you will see this message when you try to view articles older than 30 days.

Comment by: Ian Robinson. Posted 15 years ago [2009-01-06 17:41:40]

In terms of the European market, I think the point at which Managers in the CLO space will start to sell will be when some of the junior fees get turned off on some deals. For a smaller manager this is going to be a significant event and would cause financial stress to them. Once the OC tests start being breached the potential for the leveraged loan CLO market to get through this without real losses will be finally put to bed. At that point the bid/ask will close, but probably at a level lower than it is right now

Comment by: Anonymous. Posted 15 years ago [2009-01-06 15:44:42]

I guess as triple-C buckets get more pressing and the realisation that the primary markets are not coming back anytime real soon the bridge between the bid and ask may come in...

Comment by: Mike Peterson. Posted 15 years ago [2009-01-06 10:30:35]

My sense is that most manager transfer is taking place in distressed CDOs of ABS - where a new manager is being brought in basically to unwind the deal, presumably for a much lower fee. In the CLO space there don't seem to be many willing sellers (yet). And we hear of a few instances where managers are touting around deals but not finding buyers at the asking price. Will that change as CLOs get more distressed?

Comment by: Anonymous. Posted 15 years ago [2009-01-06 08:55:57]

Would be interesting to know how much more of this we might see; ie, CLO or CDO management mandates being transferred or moving to other organisations as new deal flow remains muted. Welcome comments from others more knowledgeable...

CLOs

more stories...