RT Journal Article
SR Electronic
T1 European CLOs Reborn
JF The Journal of Structured Finance
FD Institutional Investor Journals
SP 72
OP 75
DO 10.3905/jsf.2013.19.3.072
VO 19
IS 3
A1 Martin Sharkey
YR 2013
UL https://pm-research.com/content/19/3/72.abstract
AB With the reopening of the European collateralized loan obligation (CLO) market this year, there has been a surge in primary issuance. This article examines the new features that have been incorporated in “CLO 2.0” transactions, such as refinancing and re-pricing options, and the inclusion of provisions designed to set parameters for any restructuring and maturity extensions of underlying assets. In addition, it considers other changes, for example, to the size of manager fees and the duration of reinvestment and non-call periods compared with 1.0 transactions. Finally, it outlines developments in warehouse financing, hedging issues, and the impact that regulations—in particular, “skin in the game” requirements—are having on European CLOs.TOPICS: CLOs, CDOs, and other structured credit, developed