27th Aug 2015 11:14
LONDON (Alliance News) - Blackstone / GSO Loan Financing Ltd, which has an investment portfolio with exposure to floating rate senior secured loans directly and indirectly through collateralized loan obligations income notes, said it expects European Central Bank policy to be "ultra-accommodative", continuing to support credit and providing a liquidity injection that supports risk premiums.
"Defaults are anticipated to remain low in the near-term as low borrowing costs are expected to continue to support earnings. European growth rates are likely to remain low, with some upside provided by a weaker euro and lower oil prices helping to boost consumption," Blackstone / GSO Loan Financing said in a statement.
It said the forecast for CLO 2015 issuance is EUR18 billion to EUR20 billion, with EUR7.5 billion issued during the first half.
"We expect loan market technicals to remain strong in the short-term and ramping CLOs should support secondary levels," the company said.
The company generated a net asset value total return of 4.88% in the six months to June 30. Its NAV, the difference between assets and liabilities, was EUR329.2 million at the end of that period.
It declared dividend of EUR0.02 per euro share for each of the two quarters.
It said capital deployment into CLO income notes is 10 months ahead of target.
By Samuel Agini; [email protected]; @samuelagini
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