According to people familiar with the matter, Gorub Capital quickly purchased a large number of leveraged loans this week to take advantage of the price drop.
French bank Societe Generale has partnered with lenders to aggregate new mortgage obligations and secured investors in AAA bonds with 1.04 percentage points (or 104 basis points) as a benchmark, they said they do not require certainty to discuss private matters.
It has purchased some loans for the deal. But Golub snapped up more loans, adding a third of the loan portfolio of CLO deals after President Donald Trump’s tariff announcement will roll out the minimum since July 2023.
People added that Golub’s planned CLO transactions are called “static” CLO transactions, meaning that once the transaction is completed, its loan portfolio will not change.
Societe Generale declined to comment. Golub did not respond to a request for comment.
At least since the tariff-driven turmoil began, CLO managers have been trying to quickly buy loans to get new deals. Bloomberg reported earlier this week that Elmwood Asset Management is working on a similar deal with Sumitomo Mitsui Financial Group Inc. Such a deal is similar to what is called “printing and sprinting”, where managers quickly buy loans in the secondary market rather than spreading them within a few months.
Loan prices fluctuated after Trump announced a 90-day pause to certain tariffs on Wednesday, but the levels last seen by the end of 2023 are still about the same.
With the assistance of Carmen Arroyo.
This article was generated from the Automation News Agency feed without the text being modified.
