Avenue Capital Group, the $16.1 billion distressed-debt firm founded by Marc Lasry and his sister Sonia Gardner, is considering the sale of its collateralized loan obligation business.
The firm, which manages $2.8 billion of leveraged loans through the Avenue Collateralized Loan Obligation Strategy, could sell the unit within the next couple of months. News of the possible sale was first reported by Bloomberg.
Avenue’s CLO unit focuses on buying non-investment grade corporate loans and packaging them into securities. CLOs are under increasing pressure because, as the economy slows, more companies are defaulting on their loans.
The U.S. high-yield