SC Lowy and UOB AM launch first Asia Pacific backed CLO
SC Lowy together with UOB Asset Management will launch the first fully Asia Pacific backed, actively managed cash flow CLO. The CLO will be comprised predominantly by senior secured bank loans from Asia Pacific issuers and is being marketed in the USA this week with Europe and Asia to follow in the coming week. SC Lowy CEO Michel Lowy commented, “CLOs provide a critical funding mechanism for corporate borrowers in the US and Europe. With this transaction we hope Asia will follow suit and fill a vacuum for banks in need of liquidity for Asian par assets.”
The transaction’s collateral will be co-managed by UOB Asset Management and SC Lowy and underwritten by Standard Chartered Bank, Resource Capital Markets and UOB Securities. Jody Mariani, CLO trader and leading the business development for SC Lowy added, “The time and investor appetite is finally here for CLOs in Asia and we welcome this asset class to the region.”
SC Lowy is an independent fixed income specialist. Private and employee-owned, they use their balance sheet to operate a Primary Issuance and Secondary Trading business focused on high yield to distressed bonds, loans, trade claims and special situations.
Their in-house research (over 30% of total headcount) covers energy, infrastructure, manufacturing, telecom & media, metals & mining, financials, shipping and real estate for corporates based in Australia, Asia, the Middle East and Europe.
Since inception in 2009, SC Lowy has delivered sustained year-on-year double-digit growth in high-yield bond trading while expanding their secondary loan trading platform to include par loans. They rank among the leaders across Asia Pac and EMEA. Total volumes exceeded USD 8 billion in 2015.