Golub Accelerated Loan Buying for New CLO During Market Turmoil

Golub Capital quickly bought a large amount of leveraged loans this week to take advantage of prices dropping significantly, according to people with knowledge of the matter. 

French bank Societe Generale was already working with the lender to put together a new collateralized loan obligation, and had secured investors for AAA bonds at a spread of 1.04 percentage point — or 104 basis points — over a benchmark, said the people, who asked not to be identified discussing a private matter. 

It had already bought some loans for the deal. But after President Donald Trump’s tariff announcement pushed secondary loan prices to their lowest since July 2023, Golub snatched up more loans, adding about a third of the loan portfolio for the CLO deal, the people said. 

Golub’s planned CLO transaction is known as a “static” CLO deal, meaning that its loan portfolio won’t change once the deal is finalized, the people added. 

Societe Generale declined to comment. Golub didn’t respond to requests for comment. 

It’s at least the second instance since the tariff-driven upheaval began that a CLO manager has sought to quickly buy loans for a new deal. Elmwood Asset Management is working with Sumitomo Mitsui Financial Group Inc. on a similar transaction, Bloomberg reported earlier this week. Such transactions are similar to so-called “print and sprints,” where managers rapidly purchase loans in the secondary market rather than space them out over months.

Loan prices have fluctuated after Trump on Wednesday announced a 90-day pause on some tariffs, but they’re still around levels last seen in late 2023. 

With assistance from Carmen Arroyo.

This article was generated from an automated news agency feed without modifications to text.