The global market for new issue collateralized loan obligations may not return to its peak of pumping out 150 deals each year, but market players are confident it will remain a viable sector.
“It will happen,” said Jeff Boswell, portfolio manager at ICG said at the Global ABS conference this morning. “It’s really a matter of when.” ICG last year ran Europe’s first post-crisis CLO, a book of legacy loans scooped up from the Royal Bank of Scotland’s balance sheet.
He expected more legacy bank loan deals to roll out in the region over the next 18 months to two years. “Speaking to investors, there really is appetite,” he said. Shawn Cooper, global markets ABS trading at Deutsche Bank in London, agreed. “We are talking to the exact same guys, even if we haven’t....