The rise of SPACs is yet another positive factor working in favor of the red-hot collateralized loan obligation market — which is very close to achieving an annual sales record, according to CLO equity investor Flat Rock Global, Bloomberg reports.
That’s because having SPACs hunt for acquisition targets in the riskiest borrowers within CLO loan pools may mean credits that currently trade somewhat below par can trade back up to that price as a result of the SPAC merger process, Shiloh Bates, managing director at Flat Rock, said. Read more.
