Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers I > Headlines for Internet Brands, Inc. > News item |
Internet Brands allocates, trades higher; amid retail outflows, CLO bid stays robust, trader says
By Paul A. Harris
Portland, Ore., June 27 – The LCDX 22 index of bank loan credit default swaps remained unchanged on Friday at 104 7/8 bid, 105 3/8 offered, according to a hedge fund manager.
The bid for second-lien loan paper remains strong, according to a trader, who added that it could be the loan market's present outperformer.
“None of it is being offered,” the trader specified.
“You can't find it.”
In the primary market, Internet Brands Inc. set final pricing on $680 million of term loans.
Both tranches priced at 99 and traded higher, according to a trader.
The first-lien tranche broke to 99¾ bid, and traded to 99¾ bid, par ¼ offered, the source said.
The second-lien tranche broke to 99 3/8 bid, 99 7/8 offered and remained there, the trader added.
News that bank loan mutual funds sustained another sizable outflow does not seem to be impacting loan executions or the performance of loans in the secondary, a trader said.
The loan funds saw $424 million of outflows during the week to Wednesday, the trader said, citing a report from Lipper-AMG.
The four-week moving average of flows is a hefty negative $700 million, the source added.
However, the outflows are from the retail portion of the market, which amounts to about one-third of the market, the trader said.
“These outflows are offset by CLOs,” the source remarked. “CLO issuance for June, alone, has been $12 billion. And we're hearing that separate accounts are seeing inflows.”
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.