CLO deal pipeline builds; secondary trading improves after thin volume at start of week

By Cristal Cody

Tupelo, Miss., March 2 – CLO deal action is expected to pick up in March in the new issue and refinancing markets and significantly after April if no appeals are filed against the U.S. Court of Appeals for the District of Columbia’s ruling in February.

The ruling sheds the risk retention requirement that CLO managers retain 5% of a CLO deal.

GSO/Blackstone Debt Funds Management LLC is offering $1,025,000,000 of notes due April 17, 2031 in the previously reported Cook Park CLO, Ltd./Cook Park CLO, LLC transaction, according to a market source.

Morgan Stanley & Co. LLC is the placement agent.

In other activity in the secondary market, securitized trading improved after negligible volume at the start of the week. On Thursday, $86.88 million of investment-grade CBO/CDO/CLO issues and $87.07 million of non-investment-grade securities were traded, according to Trace data.

Wednesday’s session saw $55.4 million of high-grade securities and $36.03 million of lower-rated issues trade.

On Tuesday, $19.05 million of investment-grade CBO/CDO/CLO issues were traded, while volume was too light to register in non-high-grade securities during the session.

Securitized secondary trading volume on Monday was too thin to register in both high-grade and lower-rated issues.

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