NEW YORK--(BUSINESS WIRE)--Issuance of new U.S. collateralized loan obligations (CLOs) began the year at a brisk pace; however, issuance for the remainder of the year is expected to slow, according to Fitch Ratings. Fifty-two U.S. CLOs and nine European CLOs priced during the first quarter of 2015, according to Fitch Ratings in its latest Global CLO Market Trends Quarterly.
Fitch rated six U.S. CLOs during the first quarter that were issued in compliance with European risk retention rules. Liability spreads on these transactions were tighter than non-compliant structures by approximately six basis points on the senior-most tranche. Delayed-draw note structures have also become more common in the U.S. as a potential method to preserve refinancing rights after risk retention is implemented in late 2016.
Fitch's latest 'Global CLO Market Trends Quarterly' newsletter is available at 'www.fitchratings.com' or by clicking on the above link.
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Applicable Criteria and Related Research: Global CLO Market Trends Quarterly