CLOs heat up with BlueMountain, GoldenTree, Saba among players

By Lawrence Delevingne

Thu Oct 25, 2012

Hedge funds are increasingly turning to collateralized loan obligations; the RMBS of 2013? CLOs took the stage at this week's ABS East conference in Miami.


 Serhan Secmen (Photo: LinkedIn)

Collateralized loan obligations were the talk of the ABS East conference in Miami this week.

CLOs have been an important part in the general resurgence of the asset backed securities market this year, boasting healthy new issuance and strong returns. The CLO market stalled after the financial crisis hit but has raced back this year, with a five-year-high $35 billion issued so far, according to Securitization Intelligence. Some of the new securities in 2012 have come from firms known for their hedge funds, including Och-Ziff Capital Management, Onex Credit Partners and Highbridge Capital Management.

It was clear at ABS East--held at the posh Fontainebleau hotel on South Beach--that hedge funds are taking note: investor attendance was up substantially and many sat in on at least one of the six panels focused on CLOs. 

"Heading into 2013, everything is rich. Many investors are trying to find less-rich...

ISSN: 2151-1845 / CDC10004H


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