It follows in the footsteps of other CLO managers, including Apollo, KKR and Pinebridge, in taking advantage of a dramatic reduction in yield spreads over the past few months; the deal may also be amended to put it in compliance with the Volcker Rule.
The growing advantages for borrowers is most keen through institutional term loan Bs, which increasingly benefited last year from fewer maintenance restrictions and cheaper pricing to overtake high yield bonds as the leveraged finance instrument of choice for sponsors.
The deal announced Tuesday shifts eight CLOs totaling about $3.4 billion in assets under management to Marble Point, which is headed by former Golden Tree Asset Management executive Thomas Shandell.
The final tally of $875 billion reflects heavy refinancing in the fourth quarter, when issuers sought to lock in attractive funding before the Federal Reserve raises rates further.
The frenzy of issuance in November-December may have pulled forward activity that might otherwise have occurred in January; however strong demand from overseas investors should keep spreads tight.
Treasurer, Head of Asset Management
Firm: NewStar Financial
The wireless carrier, though only rated single-B, has more leeway from existing investors to enter into a transaction like this than even some investment-grade companies.Current Issue