Manager starts CLO wind-down early

By Mike Peterson

Thursday, October 22, 2009

A manager has taken the unusual step of ending a CLO’s reinvestment period early, after concluding that there was nothing in the market worth buying

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Comment by: Anonymous. Posted 14 years ago [2009-10-26 16:23:28]

Presumably they are holding the equity and presumably this reflects their decision that the market is fully priced - though puzzling that they would choose to not take advantage of some optionality given the relatively cheap cost of the debt. In any event, am sure this fee income is quite immaterial to the organization.

Comment by: Anonymous. Posted 14 years ago [2009-10-22 22:35:47]

Maybe a supreme being influenced Citadel.

Comment by: Douglas Watson. Posted 14 years ago [2009-10-22 15:12:07]

Clearly other agendas at work here as the prior comment suggests. Cutting off reinvestment is an illogical decision for a collateral manager in most circumstances. Why preclude other opportunities that may arise, and why reduce the manager's fee income prematurely?

Comment by: Anonymous. Posted 14 years ago [2009-10-22 14:51:17]

There must be more to this storyline than reported here....

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