Janus Henderson starts ETF giving global access to U.S. CLOs
Interest in CLO ETFs, an asset class that's only been around since 2018, is picking up, with the number of funds doubling since August to a total of 24.
Interest in CLO ETFs, an asset class that's only been around since 2018, is picking up, with the number of funds doubling since August to a total of 24.
Now the structured mortgage securities are cheap enough that CLO investors are watching them more closely, according to strategists and investors.
Over 85% of the collateralized loan obligation's total dollar value will be comprised of apartment complexes and hospitality and industrial properties.
The giant asset manager is launching new CLO funds that generate higher returns without significantly increasing risk–by focusing on the less-favored tiers of CLO stacks.
The fund closes ahead of separate news that it formed the Private Real Estate Credit platform, which will originate senior and subordinated commercial real estate loans.
Apollo will assume about $2.2 billion of private credit and renewable assets from Irradiant, while RRAM will add almost $11 billion of CLO assets to its firm.
With that sizable fire power, Alcentra hopes to meet the growing market demand for collateralized loan obligations.
The French bank foresees CLO growth in U.S. and Europe but cautions wariness around the current administration's potential impacts to inflation and the economy.
Refis and resets surge in January as AAA spreads continue to tighten
Collateralized loan obligation activity should increase despite higher-for-longer rates and liability management exercises.
The $1 billion deal included classes A-L-A and A-L-B were offered as loans.
The fund's managers are hoping to replicate the success of their US-focused ETF, which has amassed $17.2 billion in assets under management in less than five years.
Classes A through E, do not allow for payment-in-kind, which allows borrowers to use assets other than cash—such as equity or shares—to make interest payments.
The bank has promoted Steve Baker to global head of CLO primary. George Blair will become head of US CLO structuring.
CLO market strength likely to continue in 2025 if the U.S. economic soft landing remains on track.
Overall CLO growth indicates the asset going mainstream in Europe
The overlooked segment offers a premium over AAAs backed by significant subordination, the firm says.
The $300 million offering marks private-market-specialist StepStone's inaugural middle market CLO.
Deal finds lower pricing and adds a new class of AAA notes.
The fund will invest in the riskiest tranches of bonds backed by leveraged loans.
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