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US CLO warehouse count rises amid heavy new issue supply
Sam Robinson
â˘2 min read
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Despite a busy primary pipeline in October, the number of US CLO warehouses rose for the second month in a row, according to data from US Bank and Maples Group.
US Bank had 87 warehouse mandates as of the end of October, up from 81 in September, and 71 in August. This monthly gain was reflective of 12 new warehouses opening during the month, less six warehouses that closed into CLOs.
âWe have seen at least eight new warehouses open during October,â said James Reeve, a partner in Maples Groupâs Cayman Islands office, âall with different managers, and five different warehouse providers.â
Maples Group also worked on eight other SPV incorporations in October, Reeve confirmed, some of which have proceeded to open warehouses in November.
US CLO managers have been busy across October and November, supported by the flow of opened warehouses. They priced 27 new US CLOs (BSL and MM) in October and there have been 21 so far in November, as managers
Source: US Bank
The number of younger warehouses has grown, according to US Bank data â by the end of October it had 21 mandates less than 90 days old, up from 10 at the end of August.
US Bank had 37 warehouses over 270 days old at the end of October, although seven of these are considered âevergreenâ by the provider.
The weighted average purchase price for all warehouse assets dropped slightly across October, from 98.07 to 97.94, according to US Bank data. Weighed average spreads were steadier at 384bps.
