CLO spreads widen as Nochu pulls back

摘要

Slowing investment by Japanese financial institutions has pushed pricing on the most senior tranches of European CLO funds to its widest point in nearly three years as investors such as norinchukin bank scale back multibillion-dollar investments. Japanese banks account for about 10% of the USS750bn global CLO market, according to a Bank of England estimate. But no Japanese investor acted as an anchor investor for a Triple A tranche of a European CLO in May, sources said.