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Global credit funds & CLO's
October 2022 | Issue 249
Published in London & New York.
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October 2022 | Issue 249
Past returns
US firms become Euro CLO issuers
Five years ago in Creditflux we reported on CIFC Asset Management and Voya Investment Management harbouring European CLO ambitions as US issuers became accustomed to risk retention.
Voya made it to the continent first, pricing a European CLO in March 2018, while it took Angelo Gordon and CIFC another two years. Meanwhile, in the US, risk retention ceased to be an obligation, so global CLO managers could divert their funds towards European CLOs.
Recently, the rate of new entrants into European CLOs has slowed. In fact, this year the only new issuer is Acer Tree, a London-based fund manager.
Points up front
Form an orderly queue. Or follow the celebs
If we have learned one thing over the past month, it’s that queuing in an orderly manner is very important to the British public. No matter your status, you simply must wait your turn.
But the same levels of etiquette, thankfully, do not apply in CLO warehousing queues, where CLO managers are free to barge to the front of the line if they feel they’ve ramped adequately. (Otherwise, we could have cases where slow rampers hold everyone up.)
In the CLO market, relationships matter. So it would not be a surprise if an elite-level manager was given the VIP treatment by a bank and allowed to print its CLO first. Still, perhaps there is room for some decorum in the way CLO queues are handled. We suggest a non-priority line for CLO issuers not in a rush, and a “Holly and Phil” queue if you simply must print and sprint.
Queue busters: British daytime TV presenters Holly Willoughby and Philip Schofield can help get your CLO priced sharpish — they have a press pass
Exhibit A: every single CLO slide deck ever
In a recent note, the National Association of Insurance Commissioners said they needed “more data to showcase that CLO pools have outperformed the loan market”. That’s funny, because we’ve never read anything to the contrary. Perhaps the NAIC should try taking a gander at every published CLO pitchbook.
“Can we have a best hair in the CLO market category?”
One commentator’s hair-raising idea of a new category for the Creditflux CLO Census, which is set to go live on 5 October.