Columbia Management, CSAM price upsized CLOs; August primary thin; secondary volume rises

By Cristal Cody

Tupelo, Miss., Aug. 17 – New August CLO issuance includes deals from Columbia Management Investment Advisors, LLC and Credit Suisse Asset Management, LLC, while overall volume remains light for the month, according to market sources on Monday.

Columbia Management Investment Advisors sold an upsized $709.8 million of notes in its second CLO offering of the year.

Credit Suisse Asset Management brought a $775 million deal, upsized from $620 million. The Madison Park Funding XVIII Ltd./Madison Park Funding XVIII LLC offering priced via Morgan Stanley & Co. LLC. Final pricing details were not available by press time.

“The CLO market has seen just five deals price month to date, for a total of $2.9 billion,” Wells Fargo Securities, LLC senior analyst Dave Preston and associate analyst Mackenzie Miller said in a note on Monday. “Loan supply has been limited relative to CLO formation (the overall loan market has grown by just 0.4% year to date), leaving CLO managers to ramp portfolios amid light loan supply. Retail outflows over the past few weeks, which have pressured loan prices, may help CLO issuance.”

In the secondary market, trading was choppy over the previous week from volatility over the devaluation of the yuan, with $350 million of BWIC volume, according to BofA Merrill Lynch analysts.

European CLO BWIC volumes rose to more than €100 million in the previous week.

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