July 25, 2023 (NO COMMENTS)

An unprecedented wave of collateralised loan obligations (CLOs) exiting so-called reinvestment periods is pushing up prices for short-dated loans. CLOs buy around 70% of loans in the market. But many vehicles are facing tighter restrictions right now on the types of loans they can purchase, driving their managers to snap up short-duration loans at a premium. “You’re seeing a massive grab for short-duration paper,” says Brian Yorke, CLO manager at Muzinich & Co. Demand is higher for loans