European CLOs - Key Advantages of Irish CLO Issuers
Markets have recently seen the return of the European CLO with CLO sales of €7.5 billion in 2013 and a post-crisis high of €8 billion so far in 2014. Commentators have attributed this to experienced and larger CLO managers becoming more comfortable with risk retention rules and the successful implementation of structures which comply with them. Increased investor confidence, coupled with better relative value returns for CLO securities compared with other similar asset classes, have helped drive this recovery. The European Central Bank ("ECB") recent support of ABS purchases, while perhaps not impacting directly on CLOs, will nonetheless enhance liquidity in the overall sector.
Ireland is one of the most popular jurisdictions for the establishment of CLO issuers, with approximately 75% of European CLO issuers in 2014 established there.
Maples and Calder has acted as issuer counsel and listing agent for deals involving managers and underwriters such as Guggenheim, ICE Canyon, Morgan Stanley, Goldman Sachs, J.P. Morgan, CVC Credit Partners, Intermediate Capital Group and BlueBay Asset Management LLP on some of the largest CLO transactions in 2013 and 2014 and are market leaders as issuer counsel with respect to Cayman Islands law on US CLO transactions.
Maples and Calder's affiliate, MaplesFS is an independent global provider of specialised fiduciary, accounting and administration services (including FVC, EMIR, FATCA and Irish tax compliance services) for structured finance vehicles including CLO issuers. This close working relationship offers clients the maximum convenience, speed and efficiency in establishing and administering CLO issuers.