CLO Market Whale Is Back After Regulatory Scrutiny Drove Retreat
- Japan’s Norinchukin resumes selective purchases of U.S. deals
- Despite buyer’s pullback, spreads in CLO market tightened
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The U.S collateralized loan obligation market largely bid farewell to its biggest buyer earlier this year. Now Japan’s Norinchukin Bank is back.
The lender to Japan’s farmers and fisherman has re-started purchasing collateralized loan obligations after dramatically cutting back around April amid heightened market scrutiny, according to people familiar with the matter. In Norinchukin’s absence, managers of leveraged loans bundled into bonds found other willing buyers, said the people, asking not to be identified discussing a private matter.