Flexible reinvestment rules have boosted all CLO investors, finds RBS

Wednesday, June 13, 2012

The latest edition of RBS’s CLO market review highlights how managers have built par in their deals.

Comment by: Anonymous. Posted 11 years ago [2012-06-14 00:50:11]

Par building hurts the senior tranche in my view. Just ask all the senior investors of old deals paying L+30 and watching their bonds extend .... Oh, and let's not forget that the CLO manager benefits directly from the par building ....

Comment by: Anonymous. Posted 11 years ago [2012-06-13 13:51:34]

Must be very generous selling broker proving the monthly marks..

Comment by: Anonymous. Posted 11 years ago [2012-06-13 11:47:25]

Sorry, don't understand but how does buying a deep discount increase the NAV to the equity since the NAV uses the market value of the loan and not the PAR amount? Equity cash flow may increase but not NAV.

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