CLO Rules May Squeeze Out Smallest Debt Managers
U.S. regulations cracking down on the biggest buyers of leveraged loans are said to risk concentrating the debt into the hands of the largest firms.
October 23, 2014
CLO
ABF Journal
U.S. regulations cracking down on the biggest buyers of leveraged loans are said to risk concentrating the debt into the hands of the largest firms.
Fitch said a number of U.S. banks again boosted holdings of collateralized loan obligations (CLOs) in the first quarter, and the ratings agency expects the trend to continue as banks and other CLO investors look for alternatives to low-yielding Treasurys and MBS.
Salus Capital closed Salus CLO 2012-1, a $250 million collateralized loan obligation vehicle, which will invest in senior secured asset-based loans originated by Salus. A Salus subsidiary will act as the collateral manager of the CLO.