Ex-Credit Suisse Bankers Are Shaking Up the $1.3 Trillion CLO Market
The demise of the Swiss banking giant has helped pave the way for banks in Canada and Europe to break into the business of arranging CLO deals.
The logo of Credit Suisse on their offices ahead of the World Economic Forum (WEF) in Davos, Switzerland, on Sunday, Jan. 14, 2024.
Photographer: Stefan Wermuth/BloombergA crowd of large global banks is starting to muscle in on the lucrative business of arranging collateralized loan obligations, another sign that life’s returning to this crucial $1.3 trillion corner of corporate finance.
Credit Suisse used to be a big arranger of CLOs — vehicles that buy up junk-rated company loans, bundle them together and sell them as bonds. But the Swiss lender’s demise has opened the door to a raft of new contenders including Canada’s CIBC, the Bank of Nova Scotia and Spain’s Banco Santander SA. France’s Societe Generale SA and Japan’s Mizuho Financial Group Inc. are taking advantage to ramp up in Europe.