CLO market quiet as conference continues; pricing emerges for Zais Group, Ivy Hill deals

By Rebecca Melvin

New York, Sept. 23 – Pricing emerged in a pair of collateralized loan obligations on Tuesday, including deals by Zais Group LLC and Ivy Hill Asset Management LP.

Zais Group has priced $333.75 million of fixed- and floating-rate notes due July 2026 in the Zais CLO 2 Ltd./Zais CLO 2 LLC vehicle, and Ivy Hill priced $334.6 million of notes due Oct. 15, 2026 in the Ivy Hill Middle Market Credit Fund IX Ltd./Ivy Hill Middle Market Credit Fund IX LLC deal.

Otherwise CLOs were quiet in the session. Many market players were attending the annual ABS East conference, taking place over three days in Miami.

While some have given voice to the opinion that the Federal Reserve came out last week a little bit more hawkish than market players initially thought, many still hold to the idea that the slow growth recovery that has thus far kept the Fed in dovish mode will continue and therefore the “broad theme of reaching for yields will continue to make sense,” according to the latest securitization weekly published by BofA Merrill Lynch.

“As the front end of a duration barbell, we continue to like CLOs and we dismiss talk of a bubble in CLOs and high yield debt. Capital is simply being allocated to corporate debt and away from the formerly dominant residential mortgage market because of all the post-crisis challenges lenders had collecting on mortgage debt,” according to the weekly.

© 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.