(Reuters) Some Collateralized Loan Obligation (CLO) managers are choosing to issue funds with shorter terms in order to counter rising spreads.Among the first eight CLOs issued this year, just three had a standard, five-year reinvestment; the time in which the fund can purchase new loans, according to LPC Collateral data. PGIM priced a CLO last week with a seven-month non-call period and a one-year reinvestment, while CBAM priced a deal that includes a one-year non-call and a three-year reinvestment.
Shorter CLO Reinvestment Periods Gain Favor
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