Sabrina Fox, chief executive officer of the European Leveraged Finance Association: “It’s a big issue that needs to be dealt with because it will impact the primary market. There are investors considering whether it makes more sense to wait to buy the loan in secondary rather than primary.”

Reorg equity sitting within CLOs has risen in value over the past year and Pearl Diver says it may be a good time to exit these positions “and realise value for CLOs”.

It appears Franklin Templeton is willing to accommodate Franklin Advisers and Benefit Street as separate CLO managers after the former priced its first CLO in a decade.

Norinchukin Bank has attempted to return to European CLOs — but equity investors have fought against the bank’s stipulations.

Credit market participants have not been hung up on credit spread adjustments (CSA) and that’s positive, according to speakers on a webinar hosted by DealCatalyst. According to KKR’s Tal Reback: “The CSA does not represent anything. It is obscuring the price.”