CLO markets steady as summer slowdown continues; details emerge on Milos CLO

By Rebecca Melvin

New York, Aug. 16 – The CLO market was described as steady on Wednesday with little market activity to speak of as the sluggish summer period dragged on.

“It’s steady with no new information impacting the CLO market,” a New York-based market source said.

No new U.S. CLO issues were priced on Wednesday, the market source said.

The release of the minutes from the U.S. Federal Reserve’s last policy-setting meeting didn’t reveal any new or unexpected market information, sources said.

The policy makers stressed at the July 25-26 meeting that they will continue to remain data-dependent in deciding when to adjust the Fed Funds target rate from its current 1% to 1¼% range.

According to the minutes, the FOMC members still expect economic activity will expand at a moderate pace and the labor market will strengthen somewhat further. But inflation remains below the committee’s 2% objective and will have to be monitored closely to determine if this low rate is transitory.

Members continued to be committed to beginning the process of shrinking its portfolio of Treasury and mortgage-backed security assets, probably as soon as September.

Details emerged on the Milos CLO Ltd./Milos CLO LLC, priced by Invesco RR Fund LP, earlier this month. The manager, a majority owned affiliate of Invesco Senior Secured Management, Inc., priced $509.4 million of notes in a broadly syndicated collateralized loan obligation with a rate of Libor plus 125 basis points for the notes at the top of the stack.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.