2 March

ICG hires European CLO portfolio manager from Barings

3 March

US CLO double Bs gap out to 825bp on coronavirus volatility as Bain braves market

CLO pricing is affected as Bain’s CLO double Bs price 158bp wide of 2020 average.

23 March

US senator Elizabeth Warren has requested leveraged lending data and detailed information about the risk posed by loans, having aired her concerns about covid-19’s impact in a letter to treasury secretary Steve Mnuchin.

5 March

Fed cut triggers Libor floors on third of US loans

The US Fed first cuts rates to 1-1.25%, but 10 days later it takes drastic measures to protect the economy by cutting rates another 1%.

6 March

Credit traders’ kickstand: this is not a drill

3 March

CLOs show coronavirus resistance even as bonds and loans suffer

CLOs are faring better than corporate credit where deals have been pulled. A V-shaped recovery is viewed as likely.

12 March

Secondary CLO triple As slump below October levels

2020 had started off with a rally but that has been erased. Triple As are still at 98 cents, which is seen as a big drop.

9 March

Bluestem bankruptcy hits $106 million of CLOs

CLO managers have to stay on top of troubled single names even as the market moves.

11 March

PGIM lines up print and sprint CLO

PGIM looks to exploit weak loan prices but the deal does not pan out.

17 March

Fed accepts triple A-rated CLOs in new ‘primary dealer credit facility’

More support from the Fed as it makes senior CLO triple As eligible in its repo programme.

18 March

Warehouses catch coronavirus chill

Ellington decides to sell the majority of loans in a European CLO warehouse via a b-wic.

19 March

CLOs pressured by sub-80 loan index as UBS predicts $550 billion of distress

The US loan index drops to its lowest level since 2008.

24 March

S&P puts US CLOs on negative watch including seven failing triple C test

By the end of the month, 15 US CLOs are on negative watch.

25 March

Managers put on leveraged triple A trade

US CLO triple As are now wide of 400bp and hedge funds are moving in. They expect these positions will rally 10 points.