Joe Moroney, leveraged loan portfolio manager at Apollo Capital Management, with $9.3 billion in assets under management, recently spoke with Managing Editor Joy Wiltermuth about the current investor base for new issue collateralized loan obligations and the challenges of bringing new deals to market.
What do buyers want to know about new issue CLOs?
Investors should know they are on their way back, though it's hard to say definitively when that will happen in large size. The market came to a screeching halt in the summer of 2007 with the onset of the credit crisis and has been in a real drought ever since.
CLO issuance in the first half of this year has just begun to get re-started, and many of those have been "special situations," either a manager had an existing deal and the same investors stayed in the "new" deal, or the manager held all the ....