2Who are the participants?

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The issuer of a CLO is a special purpose vehicle, a company with no real staff or substance. The arranger is an investment bank that creates the CLO and sells its equity and notes to investors.

A CLO’s governing contract (the indenture) consists of an agreement between the issuer and the trustee. The trustee is a bank whose role is to represent the CLO noteholders.

Almost all CLOs have notes that are rated by a rating agency. The rating agencies play an integral role in the life of a CLO.end

 

 

Top US CLO arrangers 2014
Arranger ($bn) Deals
1 Citi 19.87 40
2 Morgan Stanley 15.73 25
3 Bank of America ML 14.09 27
4 Credit Suisse 13.33 26
5 JP Morgan 12.96 22
6 Wells Fargo 10.12 23
7 Deutsche Bank 8.65 17
8 Goldman Sachs 7.52 14
9 Jefferies 6.30 17
10 BNP Paribas 4.64 11
11 Natixis 3.48 9
12 Nomura 3.23 7
Others 11.88 26
Total* 131.78 259
Top European CLO arrangers 2014
Arranger ($bn) Deals
1 Bank of America ML 2.10 5
2 Citi 1.89 5
3 Barclays 1.88 5
4 JP Morgan 1.82 4
5 Credit Suisse 1.67 4
6 Morgan Stanley 0.96 2
7 BNP Paribas 0.93 2
8 Goldman Sachs 0.85 2
9 Deutsche Bank 0.74 2
10 HSBC 0.35 1
11 RBS 0.32 1
12 Natixis 0.31 1
Others 0.35 3
Total* 14.18 35
Top US CLO trustees 2014
Trustee ($bn) Deals
1 US Bank 57.52 112
2 BNY Mellon 16.74 32
3 Deutsche Bank 14.42 26
4 Citibank 14.03 26
5 Wells Fargo 13.14 24
6 State Street 8.06 14
Total* 123.90 234
Top European CLO trustees 2014
Trustee ($bn) Deals
1 US Bank 5.19 13
2 Citibank 2.57 6
3 Law Debenture NY 2.01 4
4 BNY Mellon 1.98 5
5 State Street 1.23 3
6 Deutsche Bank 0.88 2
7 BNP Paribas 0.43 1
Total* 14.29 34

Arranger tables: source: CLO-i. Totals exclude double-counting. In the case of jointly-arranged deals, credit is split 75:25 between the lead arranger and co-arranger

Trustee tables: source: CLO-i. Excludes refinancings and upsized deals

 

 

 

Turn to the print version of the CLO guide to find out:

How bankruptcy remoteness works

What are typical fees paid to CLO arrangers, trustees, law firms and rating agencies? Who are the most active CLO arrangers?

Which investors typically buy which tranches of a CLO?

What is a control equity investor, which firms are active as control equity investors, and which are some of the CLOs they control?

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