Arni Hedge Funds, run by former Credit Suisse trader Hamza Lemssouguer, is targeting an expansion of its CLO business in Europe, by prepping for two more deals, according to a report by Bloomberg.
Arini sees opportunities in the leveraged loan market for next year and 2025, with the maturity wall opening possibilities to lend to high-quality credits at slightly wider spreads and more conservative structures, the report noted the company’s stance.
“We’re starting to price in a lot more of the stress that we’re seeing over the last quarter or two into the sort of funding needs or the loan spreads,” the report quoted the company’s head of structured credit as saying. “That in itself is kind of creating a sort of vicious cycle whereby the funding costs for companies are going up. I think that’s really the driver in terms of the level of defaults.”
