Anchorage Liquidates CLO Warehouses From BirchLane Takeover
- BirchLane got caught out by interest rate rise, market slump
- Warehouses contained loans waiting to be repackaged into bonds
This article is for subscribers only.
Anchorage Capital Group has forced the liquidation of five credit lines backed by BirchLane Capital, the London-based hedge fund that got caught out by the rise in interest rates and selloff in risky assets.
The move to shutter the lines of credit for future collateralized loan obligations — so-called warehouses — comes as BirchLane winds down and returns cash to its investors, according to people familiar with the matter, who aren’t authorized to speak publicly. Bloomberg reported last month that Anchorage has taken over BirchLane’s assets.