As Europe gears up for a busy autumn in the CLO market, LFI spoke to Gauthier Reymondier, Bain Capital Credit’s head of European liquid and structured credit strategies, and a portfolio manager for Bain’s European CLOs, to discuss the current state of play.
The discussion included why demand for European CLO equity is strengthening, and why day-one arbitrage matters less than how managers navigate volatility. Reymondier also outlines the prospects for liability costs, his top asset picks and what he’s avoiding when building a new CLO portfolio today.
LFI: How is demand for European CLO equity shaping up?
Reymondier: Net demand for European CLO equity is positive, and that’s supported by several interconnecting factors. Many CLO managers have been raising – and continue to raise – money for captive CLO equity strategies from investors that want to invest in programmatic issuance from one CLO manager…
