Arranger ends drought with first arbitrage CLO of 2009
The first visible new issue US arbitrage cashflow CLO of 2009 priced this week according to well placed market sources
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I am suprised that the curve is so steep (0ver 300-350 bps for 3 to 7 years) for AAA's. I would be very curious to know what the effective print was...
Given how low leveraged loan prices are, this type of deal makes sense. For the AAA buyer, this is an opportunity to puchase a clean portfolio with a short WAL. Equity returns could have tremendous upside if loan prices rally and the deal is called, even with a make-whole payout to AAA. Not enough AAA buyers around however so issuance will remain small.
Are we really talking about an "Arbitrage" trade and not a balance sheet exercise for a third party commercial bank?
CLOs
- Nassau joins delayed draw issuance wave 18 hours ago
- Another 2015 vintage US CLO gets refi 20 hours ago
- CSAM prices third new US CLO of the year 21 hours ago
- Blackstone chooses static structure for new European CLO 21 hours ago
- KKR prices its first new US CLO of 2024 21 hours ago
Comment by: Anonymous. Posted 15 years ago [2009-01-20 15:26:30]