Capital acquired WhiteHorse Capital, a Dallas-based CLO manager, in October 2011 to expand middle-market investing.
FORBES: WhiteHorse BDC goes public for $100M, with 12 deals at 12.8%
Finally, managers are hopeful that CLO volume will ratchet back up in the fall.
FORBES: Leveraged loan technicals strengthen in July as supply shrinks
The widely expected summer slowdown in CLO issuance is proving less severe than many participants feared.
In particular, the revival of the new-issue CLO market buoyed demand for seasoned paper.
Managers say the CLO market benefited from a small, but notable, improvement in demand for AAA paper.
On the other side of ledger, the CLO market drove the bus in August in terms of demand.
Aerogel turns out to have the highest relative ability of clothing to provide warmth, known as a Clo value.
For another, the gap between spreads on CLO liabilities and collateral has widened.
FORBES: May 2012, US Leveraged Loan Market Trends and Analysis
But how can troubled CLO portfolios that were downgraded from triple-A to junk continue to have such seemingly high overcollateralization ratios?
But how can troubled CLO portfolios that were downgraded from triple-A to junk continue to have such seemingly high over-collateralization ratios?
FORBES: Lynn Tilton's Financial Empire: More Details, More Trouble
Loan prices pushed higher again in April, bolstered by surging CLO issuance.
FORBES: May 2012, US Leveraged Loan Market Trends and Analysis
The increase came amid declining liability spreads, which boosted CLO model returns.
They are also feeble in comparison with the volume of CLO capacity, due to exit reinvestment periods in the coming 18 months.
FORBES: European leveraged loans see inflow of new money via managed accounts
The experts I talked to say the chances of Tilton floating a new CLO in this market or raising a new private equity fund are slim.
FORBES: Lynn Tilton's Financial Empire: More Details, More Trouble
While retail and institutional investors continue to put money to work in the space in early February, CLO issuance was slowing as narrower loan spreads nicked equity arbitrage.
However, instead of giving buyers a bargain for taking the package with dogs, CLO managers charge a premium by claiming that they have unique skills to avoid dogs.
April was a standout month for the CLO market.
FORBES: May 2012, US Leveraged Loan Market Trends and Analysis
There is also a lack of transparency and quantitative assessment of the considerable Judgment used to price test the CLO book given the inherent valuation uncertainty with the positions.
FORBES: No Accounting For Auditor PwC At Levin's Whale Hearing
Finally, the CLO market gained more traction in February.
FORBES: March 2012, US Leveraged Loan Market Trends and Analysis
This was not an issue at all because the money was good, the work was satisfying, and I could do a CLO job comfortably and happily for the rest of my career.
Of course, if the current pace is to continue, all of the usual caveats apply with respect to exogenous shocks that sideline investors or, conversely, tighter collateral spreads that make CLO arbitrage unattractive.
The reason, they say, is that the number institutions exploring (and re-exploring) opportunities in senior CLO liability is on the rise after collapsing to a mere handful in recent months in response to market jitters.
FORBES: Leveraged loan technicals strengthen in July as supply shrinks
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