"The $84 billion U.S. CLO market continues to find innovative ways to evolve and increase efficiency. One of the latest involves a refinancing mechanism that skips the typical process and costs of issuing a new set of notes for lower coupons.
The new method, known as the Applicable Margin Reset (AMR) debuted in June on a CLO from Crescent Capital and was developed by alternative asset manager Sancus Capital..."
- Andrew Park, S&P Global LCD
"We think the AMR structure could be a game changer. Ultimately, it could result in greater transparency and accessibility to the CLO market, which usually leads to greater liquidity. We think this can bring new participants to the market and result in overall growth."
- Olga Chernova, Sancus CIO
"The process makes CLOs more democratic because when the deal refinances, everyone can participate and it makes the process easier and the cost of the refinancing comes down."
- Asif Khan, MUFG