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Obra Capital Engages JP Morgan to Arrange Debut CLO 

Reporting: Hugh Minch Obra Capital is working with JP Morgan on its inaugural CLO transaction, according to market sources. The debut deal has a target pricing date this month but has not launched yet, sources say. The debut deal has a target size of $400 million and the majority triple-A position is available to external investors. Majority equity is not expected to be available, though the deal is also not expected to comply with European risk retention regulations. Earlier this year Reorg reported that Obra hired Scott Macklin as head of U.S. leveraged finance to manage the firm’s CLOs. Macklin joined from AllianceBernstein, where he helped launch the BSL CLO business, and reports to Obra’s head of structured credit Peter Polanskyj. In April, Obra launched two exchange traded funds, or ETFs, to invest in structured credit including CLOs. The two funds, named Obra Opportunistic Structured Products ETF and Obra High Grade Structured Products ETF, were the inaugural investor offerings of Obra Fund Management. Last week Polus Capital Management became the first manager in the U.S. to price its first BSL CLO in 2024, with Jefferies arranging the $404.5 million Polus US CLO I. This year has seen a decrease in[...]