Global CLO volume grows to $86 billion-plus; heavier deal pipeline forecast

By Cristal Cody

Tupelo, Miss., July 21 – Global CLO issuance rose to more than $86 billion year to date with eight new deals priced so far in July, according to market sources and Prospect News data on Tuesday.

The U.S. market saw its first $1 billion-plus CLO transaction in 2015 after Apollo Credit Management (CLO) LLC priced $1,111,850,000 of notes in the previously reported ALM XVI, Ltd./ALM XVI LLC deal. The CLO brought in the previous week priced the AAA-rated tranche of notes at Libor plus 146 basis points.

U.S. CLO managers priced four $1 billion-plus CLO transactions in 2014, according to Prospect News data.

The CLO deal pipeline is expected to remain strong in the third quarter after primary action thinned in May and June, though the market will continue to be affected by volatility surrounding the Federal Reserve’s anticipated rate hike, sources report.

© 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.