Top US CLO retail holdings

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Top retail loan holdings in active US CLOs at the end of July include Albertson’s TLB, Bass Pro Shops TL and EG Group TL, with US$2.1bn, US$1.9bn and US$1.7bn of total issuer loan volume respectively. While loan debt of several defaulted retail issuers is still held in active CLOs, their positions are  small compared with overall retail loan holdings: Payless Inc Term Loan A due 8/22 totals US$328m, Sports Authority Inc Term Loan B due 11/19 has US$130m of total loan volume, and Academy Sports & Outdoors TL due 6/22 holds US$123m. The retail sector continues to feel pressure as global and US growth rates remain subdued, with 2019 global and US growth forecasted at 3.2% and 2.6% , according to the IMF World Economic Outlook Update from July.  Since 2018, 10 issuers including household names like Neiman Marcus and Sears have defaulted on their loan debt, for a total volume of US$6.7bn. The tally of issuers is higher when including bond debt – luxury retailer Barney’s held bond debt only and filed Ch. 11 on August 6.

Contact: Elizabeth Han
elizabeth.han@thomsonreuters.com

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