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Stock impact report

Market disruption creates ‘print and sprint’ CLOs [Reuters]

Federated Hermes, Inc. (FHI) 
Last federated hermes, inc. earnings: 4/30 04:17 pm Check Earnings Report
Company Research Source: Reuters
Market disruption creates ‘print and sprint’ CLOs LONDON, April 9 (LPC) - A number of CLO managers are printing short dated CLOs to take account of current market disruption caused by Covid-19 and buy bargain trades in the secondary loan market following a massive sell-off in loan pricing. Oaktree and Permira are marketing CLOs in Europe totalling around €375m and €300m, respectively with a focus on ramping up a pool of leveraged loans in a short period of time via the secondary loan market, banking sources said. The so-called ‘print and sprint’ deals differ to typical CLOs which spend months ramping up warehouse portfolios from both the primary and secondary loan markets. With no primary issuance due to the coronavirus, managers have been forced to adapt CLO structures and buying habits. In addition, these deals have shorter one-year non-call periods rather than two-years, while the re-investment period is around one to two-years instead of the five-year periods typically seen on CLO Show less Read more
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