Excess Spread — Loan prices aren’t real, CMBS 3.0, bring on the retail
- Owen Sanderson
Programming note: no child yet. Probably off from next week
Loan prices aren’t real
We recently caught up with Erik Miller, co-head of the CLO business at Canyon Partners, to discuss Canyon’s CLO debut in the European market, priced the Monday after the fall of SVB. In my view a debut CLO manager is pretty newsworthy; there are supposed to be a fair few lining up for later this year, but 2022 only saw Acer Tree (pre invasion) and the relaunch of the CQS shelf.
Canyon’s journey to market has been a long and winding road. It started looking seriously at the market in 2019 (I recall someone from Canyon appearing at IMN’s European CLO event in 2019 to explore the possibilities; the 2023 IMN CLO conference is next week). It’s not at all new in European credit; it’s had a presence here for 17 years and manages $3bn-equivalent out of London, so in a sense CLOs was just the missing piece.