CSAM, Neuberger Berman, BlackRock price CLOs; JPMorgan cuts forecast; secondary active

By Cristal Cody

Eureka Springs, Ark., Feb. 29 – Four new CLO deals priced in February, but market participants expect volume to remain light over the coming months.

Credit Suisse Asset Management, LLC priced a $504.9 million CLO deal.

Neuberger Berman Fixed Income LLC sold $361.5 million of notes in its new CLO offering.

BlackRock Financial Management, Inc. priced a $498.75 million U.S. dollar CLO.

BlackRock Investment Management (UK) Ltd. was in the European market on Feb. 10 with the €410,238,000 BlackRock European CLO I Designated Activity Co. deal.

Crestline Denali Capital, LP also priced the $359 million Denali Capital CLO XII, Ltd./Denali Capital CLO XII LLC offering via BNP Paribas Securities Corp.

Despite the latest deals, volume remains low year over year.

U.S. CLO issuance totals $3.4 billion in eight new deals year to date.

J.P. Morgan Securities LLC analysts dropped their fiscal 2016 CLO volume forecast by 40% to $35 billion to $45 billion.

“In terms of supply, this year has gotten off to a start comparable to 2012, which saw $55 [billion] in total issuance,” the analysts said in a market note.

JPMorgan analysts also revised their primary U.S. CLO AAA mid-2016 spread forecast to the Libor plus 160 basis points to Libor plus 170 bps range from a Libor plus 155 bps to 160 bps spread estimate.

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