KopenTech in the Press
Applicable Margin Reset (AMR) protocol, though untested as yet, is beginning to gather steam in the CLO industry. TCW Asset Management’s latest offering, TCW CLO 2019-1, is the latest to embed AMR in its documentation.
Traditional refinancing of collateralized loan obligations is costly, time-consuming and risky. Applicable Margin Reset (AMR) is a speedier, less expensive, more transparent option that mitigates operational and market risks.
CLO managers have firmly got to grips with US risk retention rules and, as a result, a massive $102.7 billion of CLOs priced globally during the second quarter of the year. Innovation is the hallmark of the evolution of the industry.
At a time when much of the CLO market’s creative energy has been concentrated on developing structures to facilitate compliance with the U.S. risk retention rules, another innovation has emerged: Applicable Margin Reset (AMR).
MUFG has priced another CLO featuring the applicable margin reset mechanism (AMR).
MUFG Securities Americas today priced a $406.4 million CLO for Seix Investment Adivsors LLC, according to market sources.
KCAP Financial (KCAP) announced that its wholly owned asset management Trimaran Advisors LLC had restructured and "upsized" a CLO.
The $84 billion U.S. CLO market continues to find innovative ways to evolve and increase efficiency.