Nice round-up of CLO market pain. ETF outflows and forced selling amidst high cross-asset volatility mean there are lots of deals to be had in the secondary market. That makes it hard to issue new CLO, a huge source of demand for leveraged loans. - ThreadSky

peark.es • 1 day ago

Nice round-up of CLO market pain.

ETF outflows and forced selling amidst high cross-asset volatility mean there are lots of deals to be had in the secondary market. That makes it hard to issue new CLO, a huge source of demand for leveraged loans.

Comments

peark.es•1 day ago

So far this looks more like "dislocation that the market can chew through if given a bit of time" rather than "DA BIG SHORT BABY", but I'm sure people will get hyperbolic about it given the fact it involves securitization.

ar-rm4.bsky.social•1 day ago

aremay.bsky.social•1 day ago

My understanding of the article is that the companies who use these markets to raise money tend to be in a weaker or more perilous financial position - does a bit of time of turbulence pose a real issue for these companies in terms of survival, or just them getting bigger/investing?

amplevigour.bsky.social•1 day ago

it’s been years since i was anywhere close to CLOs, are we seeing NAV problems anywhere

mdasilva.bsky.social•1 day ago

A lot of it is also a weakening dollar boosts stocks with lots of international revenue that are listed in USD, right?

seajay.bsky.social•1 day ago

I always look at the ETF side of this market and wonder what their execution looks like compared to the rest of the secondary market considering they're so time constrained.

bobbby.online•1 day ago

I wonder if the folks over at Eagle Point Credit Mgmt have been chattering about anything publicly. Their CLO book is pretty prolific IIRC from some interviews with them on Capital Allocators. Majewski was sharing a ton of unique inside baseball