Large Banks Take Interest In CLOs On Secondary Market

Sensing a continuing rise in collateralized loan obligations (CLOs), several large banks took subordinate positions in them on the secondary market, notes Asset Backed Alert (ABAlert.com). In its weekly update on worldwide securitization dated May 20, 2016, Asset Backed Alert said it doesn’t expect issuers of asset-backed bonds to continue churning out deals at a faster pace.

DB, GS, MS behind recent CLOs purchases

Citing sources, the Asset Backed Alert points out that large banks, including Deutsche Bank, Goldman Sachs, Morgan Stanley and Nomura, have in recent weeks countered a trend in which major financial institutions have avoided CLO trades on the secondary markets. The report notes that these large banks have made purchases amounting to several hundred million dollars. The report...