NEW YORK--(BUSINESS WIRE)--Issuance of new U.S. collateralized loan obligations (CLOs) began the year at a considerably slower pace than issuance in the prior three years, according to Fitch Ratings. Eighteen U.S. CLOs and seven European CLOs priced, while new issue stated spreads increased in both markets during the first quarter of 2016, according to Fitch's latest "Global CLO Market Trends Quarterly."
Fitch observed fewer CLOs issued with a 'Bsf' rated tranche in both Europe and the U.S. during the quarter, likely due to the widening of new issue spreads for these notes. Fitch also observed an increasing focus for U.S. CLOs and their documentation provisions for amend-and-extend loans given the current distress in several corporate sectors. Post-crisis U.S. CLOs contain a wide range of provisions regarding the CLO manager's ability to consent to maturity extensions of loans. These provisions are negotiated on a transaction-specific basis between the manager and the CLO investors.
Fitch's latest 'Global CLO Market Trends Quarterly' newsletter is available at 'www.fitchratings.com' or by clicking on the link above.
Additional information is available at www.fitchratings.com.
Global CLO Market Trends Quarterly
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=880422
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