Glen Fest

2 months ago | pitchbook.com | Glen Fest

Acquisitive CLO exchange traded funds have built up assets under management by 10% in the first few weeks of 2025, underscoring the nascent but rising market influence of these retail funds in the global CLO marketplace, according to a research report from Barclays. In a Jan. 24 report (“CLO ETFs continue to grow”), Barclays strategists report that 16 ETFs in the US and Europe have acquired $2.6 billion in additional CLO securities, including a record $1.2 billion in net inflows the week of Jan.

Sep 13, 2024 | pitchbook.com | Glen Fest

Chatham Asset Management on Sept. 9 announced the launch of a separately managed CLO management business, CTM Asset Management, that will print and actively manage new-issue US CLOs.Chatham has made a “significant capital commitment” to CTM, according to a company news release, to help build the CLO platform and support initial CLO new-deal issuance.

May 29, 2024 | pitchbook.com | Glen Fest

Morgan Stanley has raised its year-end US CLO new-issue volume to $165 billion, a $50 billion jump from the year-ahead projection the bank’s global securitized products research team published last fall. The projection is the highest call yet from Wall Street. The volume mark would represent the second-highest level of broadly syndicated and middle market/private credit CLO issuance in the industry’s history behind the record $187 billion in 2021.

May 9, 2024 | pitchbook.com | Glen Fest

Credit quality and the performance of loans backing middle-market CLOs has moderately declined as high interest rates weigh on the largely unrated borrower pools, according to a new CLO sector report issued May 8 by Moody’s. An increased number of obligors assessed by Moody’s have worsening liquidity and interest-coverage cushions, as well as rising default rates, contributing to weakening loan-issuer credit profiles, the report stated.

Mar 21, 2024 | pitchbook.com | Glen Fest

Barclays has increased its full-year US and European CLO issuance projections in recognition of the blazing start to the primary market amid surprisingly robust demand for broadly syndicated CLO paper. Barclays now forecasts 2024 US CLO volume of $135-145 billion, up from $100-110 billion. The firm said in March 15 research report that the increase is accounted for entirely by the “ferocious pace of BSL CLO activity” so far this year.