KopenTech in the Press
This week, Jefferies LLC priced the first CLO issued by East West Investment Management. Class A through E tranches will include the Applicable Margin Reset (AMR) feature. East West Investment Management joins several other CLO managers featuring AMR in their deals priced this year including Seix, TCW, and Neuberger Berman.
Applicable Margin Reset gains greater acceptance among investors. As reported by Andrew Park and Luke Millar from LCD, Neuberger Berman is the latest CLO manager to implement Applicable Margin Reset (AMR) in their newest deal. In addition, a Japanese investor has been brought on board with the feature, purchasing the class A-2 tranche.
Applicable Margin Reset (AMR) is advancing in its development -- gaining market acceptance along the way. Since 2016, over $2 billion of CLOs have been issued with the feature.
A recently published article in Opalesque featured Sancus Capital’s Olga Chernova: “The modified auction process is open to the broader market and can lead to better refinancing rates.”
James Vogl, KopenTech’s head of product development, explains how Applicable Margin Reset can help in an era of a dwindling CLO arbitrage. AMR is a streamlined method of CLO refinancing in the secondary market through the use of an auction process. It takes 1/3 the time of a traditional refinance and costs 75% less.
Anthony Schexnayder, KopenTech’s Head of Business Development will be the featured speaker at Creditflux West on June 20, in Santa Monica, CA. See the following press release for the details.
KopenTech is a featured speaker and panelist at the upcoming Creditflux West conference!
We are excited to announce that today BNP Paribas priced the $404.66 million Mountain View CLO XIV AMR for Seix Investment Advisors. This is the second new issue to utilize the Applicable Margin Reset feature.