I work at a debt fund, and we are beginning to get asked more and more how we are financing our position when we provide a quote. Obviously a lot of lenders have gone the CLO route in the last year or so (my firm hasn't), which has had a clear impact in lowering the cost of capital/spreads that they can offer.
What I've been hearing is that there are borrowers who have had their loans securitized that are now having issues with the post-close loan servicing and asset management process, and the far more rigid AM structure that the securitization process puts on them.
Any borrowers or lenders out there have any thoughts or feedback on this? Would be interested to hear if anyone is specifically avoiding CLO execution/accepting higher spreads to not be securitized.
