US fast-food chain Arby’s completed an $830 million whole-business securitisation during the past week. The transaction was the largest disclosed asset-backed deal in this week’s DCM Insider newsletter.
Commercial real estate and European CLO markets also contributed to supply. One Boston Wharf, which is largely leased to Amazon, was financed through a $660 million CMBS. Fortress issued a €406 million European CLO.
| Issuer or asset | Amount | Structure and context |
|---|---|---|
| Arby’s | $830m | Whole-business securitisation by the US fast-food chain |
| One Boston Wharf | $660m | CMBS for a property largely leased to Amazon |
| Fortress | €406m | European CLO |
CLO managers continue to reset transactions
A number of CLO resets also came to market as more managers took advantage of low credit spreads. Investment-grade corporate spreads were at 80 basis points and US high-yield spreads at 267 basis points during the week, both around 25-year lows.
The combination of the new Fortress transaction and further resets points to activity in both new-issue and existing CLO structures. Together with the whole-business securitisation and CMBS, the week’s supply covered three distinct areas of the structured-credit market.
Three markets in one week: Whole-business securitisation, commercial mortgage-backed securities and European CLOs all contributed to the disclosed pipeline.
