BNY Mellon is the largest trustee for CLOs in Europe
LONDON, Nov. 5, 2014 /PRNewswire/ -- BNY Mellon, a global leader in investment management and investment services, has been appointed trustee and portfolio administrator for Avoca CLO XII Limited, a €415 million collateralised loan obligation (CLO) launched by KKR. BNY Mellon will also act as account bank, custodian, registrar and paying agent for the CLO.
Arranged by Credit Suisse, Avoca CLO XII Limited is the third European CLO 2.0 KKR has launched. BNY Mellon has been appointed as trustee and portfolio administrator on all three issues. CLO 2.0s are those issued from 2009 onwards, following the credit crisis, and have more conservative structures, such as shorter investment periods and lower leverage.
CLO issuance in Europe this year has already surpassed the figure for the whole of 2013, €7.6 billion.1 BNY Mellon is the largest trustee for CLOs this year in Europe, in volume terms, with a market share of over 20%.2
"The European CLO market has had an excellent first half of 2014, building significantly upon last year's steady recovery," said Dean Fletcher, Head of EMEA Corporate Trust at BNY Mellon. "Institutional demand is driving the pick-up in CLO activity, with over 15 issuances so far this year.3 Investors are attracted by the higher yields that CLOs offer compared to other corporate debt. As the Eurozone economy recovers from its debt crisis and banks continue to pull back from lending, demand will continue to rise for alternative structures such as CLOs and credit funds."
KKR is a leading global investment firm that manages investments across multiple asset classes including private equity, energy, infrastructure, real estate, credit and hedge funds.
Notes to editors:
As of September 30, 2014, BNY Mellon Corporate Trust served as trustee and/or paying agent on more than 61,000 debt-related issues globally. Its clients include governments and their agencies, multinational corporations, financial institutions and other entities that access the global debt capital markets. The corporate trust business utilizes its global footprint and expertise to deliver a full range of issuer and related investor services and to develop customized and market-driven solutions. Its range of core services includes debt trustee, paying agency, escrow and other fiduciary offerings.
Corporate trust providers are appointed by corporations, municipal governments and other entities issuing debt to perform a variety of duties, including servicing and maintaining the debt issue, processing principal and interest payments for investors, representing investors in defaults, and providing value-added services for complex debt structures.
BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries and more than 100 markets. As of September 30, 2014, BNY Mellon had $28.3 trillion in assets under custody and/or administration, and $1.6 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com, or follow us on Twitter @BNYMellon.
This press release is issued by The Bank of New York Mellon to members of the financial press and media.
All information and figures source BNY Mellon unless otherwise stated as at September 30, 2014.
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1 Asset Backed Alert and BNY Mellon research
2 BNY Mellon research, as of 06/30/2014
3 BNY Mellon research, as of 08/07/2014
SOURCE BNY Mellon