CLO Bankers May Lose Out If This Startup Has Its Way
- KopenTech test auction on Jan. 30 allowed cheaper refinancing
- Technology faces headwinds in getting Wall Street to change
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A startup conducted an online auction recently that could revolutionize the way the biggest buyers of leveraged loans fund themselves.
The auction allowed a loan buyer known as a collateralized loan obligation to cheaply refinance the securities it had issued to fund its investments. The CLO saved hundreds of thousands of dollars in fees, compared with a more standard refinancing through a Wall Street bank.