MacKay Shields, AlbaCore Capital price euro CLOs; Volcker Rule change seen as positive

By Cristal Cody

Tupelo, Miss., June 26 – Two CLO managers tapped the euro-denominated primary market with new deals.

MacKay Shields Europe Investment Management Ltd. priced €210.6 million of notes in the manager’s first broadly syndicated CLO offering of the year.

AlbaCore Capital LLP brought €232.65 million of notes in a debut euro-denominated CLO.

More than €8 billion of euro-denominated CLOs have priced year to date.

In other action, the five federal agencies overseeing the Volcker Rule published the final rule amending the covered fund provisions on Thursday, and the final rule’s amendment to the loan securitization exemption would permit CLOs to hold up to 5% of the portfolio in non-loan assets, Moody’s Investors Service said in a report on Friday.

The Federal Reserve, Commodity Futures Trading Commission, Federal Deposit Insurance Corp., the Office of the Comptroller of the Currency and the Securities and Exchange Commission approved the changes to the Volcker Rule, which are expected to go into effect on Oct. 1.

“While the final rule is largely the same as the January proposed amendment, in a change from the proposal, the final rule now limits these assets to debt securities, other than convertible debt and asset-backed securities,” Moody’s vice president Lana Deharveng said in a news release.

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