Blackstone/GSO, ICG, Park Avenue price; Anchorage Capital sells CDO; BWIC volumes rise

By Cristal Cody

Eureka Springs, Ark., Aug. 1 – Primary action continues to remain active in the U.S. and European CLO markets over the summer with most bank analysts upping their deal forecasts for the year.

J.P. Morgan Securities LLC analysts revised their 2016 volume forecast to a range of $55 billion to $65 billion, down from an initial forecast of $60 billion to $70 billion, with five months left in the year.

“U.S. supply has been steady from April to July, ranging $5.2 [billion] to $6.9 [billion],” JPMorgan analysts said in a note. “The availability of loans and new issue CLO economics are the key constraints, especially given sticky AAAs.”

JPMorgan analysts also said they tweaked their European 2016 deal forecast to €12.5 billion from €10 billion, lower than the analysts’ initial €15 billion forecast “but higher than the €10 [billion] we had penciled in post-Brexit.”

In the European primary market, details emerged on Blackstone/GSO Debt Funds Management Europe Ltd.’s new €453.6 million CLO transaction.

Looking at U.S. deal action, ICG Debt Advisors LLC raised $405.75 million in a new CLO offering.

Guardian Life Insurance Co. of America subsidiary Park Avenue Institutional Advisers LLC priced a $405.95 million debut CLO.

Also, Anchorage Capital Group, LLC tapped the market with a $433 million CDO deal.

Secondary market activity was stronger over the past week with BWIC volumes of about $660 million, up 47% week over week, according to a BofA Merrill Lynch note.

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