August 2021 | Issue 237
Past returns
Doing DIY CLOs
Five years ago we reported that CLO managers were considering self-arranged CLOs. This came as risk retention rules encouraged issuers to retain CLO equity, which is the hardest part of the capital structure to shift.
Jeremy Ghose, then chief executive of 3i Debt Management, said that most large CLO managers could underwrite their own equity.
Apollo Global Securities has since scored arranging credits as co-placement agent on Redding Ridge Asset Management CLOs. But BMO has come closest to a self-arranged CLO with Great Lakes V.
Points up front
Writing the book on CMVs
Former Canyon Partners CLO head Dominique Mielle has gone from poring over CLO documentation to writing a novel about her experiences in the credit industry.
‘Damsel in Distressed: My Life in the Golden Age of Hedge Funds’ goes on sale in September. It covers Mielle’s 20-year career in the credit business.
Mielle tells us that one of her biggest accomplishments was launching one of the first capitalised manager vehicles in 2015. “This will be my epitaph: Here lies Dominique Mielle, beloved wife, mother and friend, creator of the first CMV,” she says.
After going from creating novel CLO risk retention-compliant structures to writing novels, it seems Mielle was destined to be a writer. We’re particularly curious about the contents of chapter 11.
CMV on her CV: Mielle claims she created the first capitalised manager vehicle
Non-performing loan market reboots Star Wars
Credito Valtellinese kicked off a trend a few years ago when it named its non-performing loan portfolios after characters from the Lord of the Rings trilogy, leading to Gimli, Elrond and Aragorn deals.
We hear that another bank is using a Star Wars theme for its NPLs, naming a €2.5 billion portfolio project Skywalker. That’s all well and good, but why are these ‘non-performing’ loans? As Darth Vader might have put it, we find the bank’s lack of faith disturbing.
“The mantra is doing good and doing well without sacrificing returns”
Chris Mawn, who leads the corporate loans team at CarVal Investors, says ESG CLOs on CarVal’s new ‘clean CLO platform’ aim to deliver strong returns and have a positive societal impact.
Global credit funds & CLO's
August 2021 | Issue 237
Published in London & New York.
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