Market prepares for near-term primary activity; House approves CLO bank extension

By Cristal Cody

Tupelo, Miss., Jan. 14 – The CLO primary market has remained quiet so far in 2015, but sources expect some issuance, possibly before the week is up.

“Activity has picked up,” one source said late Wednesday afternoon. “I’m doing some things in preparation for tomorrow.”

CLO managers CVC Credit Partners, LLC, PineBridge Investments LLC and Apollo Credit Management (CLO) LLC are expected to tap the market, according to market sources.

CVC Credit Partners is in the pipeline with the $510 million Apidos CLO XX/Apidos CLO XX LLC deal via Credit Suisse Securities (USA) LLC.

PineBridge Investments plans to bring the Galaxy XIX CLO Ltd./Galaxy XIX CLO LLC deal via Citigroup Global Markets Inc., and Apollo Credit Management is marketing a CLO offering via Morgan Stanley & Co.

CLO market focus on Wednesday turned to the U.S. House of Representatives, which approved a two-year extension of the Volcker Rule for banks to divest AAA CLO holdings, sources report.

The extension would delay the requirement under the Dodd-Frank Wall Street Reform and Consumer Protection Act for large banks to divest the bulk of about $85 billion of CLO holdings by two years until 2019.

The legislation passed by a vote of 271 to 154. The vote next goes to the Senate.

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