New Issue Loan Evaluation and the Investable Universe

Till Schweizer describes the challenges of building a new CLO platform in a market where demand for loans consistently outstrips supply. He explains how he capitalized on secondary market weakness in March to acquire assets at a discount, but notes that the secondary market's long tail of underperforming loans trading in the 80s and low 90s limits the investable universe for a clean first warehouse. He emphasizes the need for a stronger M&A pipeline to expand available assets.