Meanings of new clo in anglès

New CLO formation could be curbed, as a result, raising borrowing costs for corporations.

Morgan Stanley, the second busiest arranger of new CLOs, helped price the deal for Oak Hill.

Other fund managers in Europe are likely to start making redundancies if no new CLO funds can be raised.

However, given the volume of existing CLOs reaching the end of their re-investment periods, net new CLO demand remains negative.

It also limits the hit to CLO junior equity holders' returns, which would make it harder to issue new CLOs.

Since early last year, triple A spreads have been consistently compressing, an indication that conditions for new CLO issuance are improving.

If the difference between actual Libor rates and minimum floor narrows, CLO equity returns would fall and potentially lead to less new CLO activity.

The main issue is the lack of loans to put in new CLO warehouses after volume hit a 10-year low in the first quarter.

Moody's Investors Services is seeing an uptick in these provisions in new CLOs, according to Leon Mogunov, an associate managing director at the ratings firm.