AXA IM Alts has closed a $510m collateralised loan obligation (CLO), known as Allegro CLO XIII, to fresh monies.
It is the unit’s 13th such deal in the US, and saw interest from investors in the US, Europe, and Japan. CLOs are a form of asset-backed security composed largely of corporate loans, which are traded on financial markets. The non-call period for the transaction is two years, with a five-year re-investment period.
AXA IM was praised at full-year results by the insurer’s chief executive Thomas Buberl, for its origination of alternative investments during 2020, and for generating a much healthier yield from alternative fixed income than the anaemic yields available on core fixed income.