A Japanese bank that was once one of the biggest buyers of collateralized loan obligations (CLOs) in the world, before cutting back its exposure in 2019, is dipping back into the market, according to people with knowledge of the matter.
Norinchukin Bank participated in a CLO deal worth more than $500 million (¥55.5 billion) for Octagon Investment Partners, refinancing an existing transaction at cheaper rates in what’s known as a reset, according to the people, who asked not to be identified because the information is private. The bank, often called Nochu, didn’t boost its exposure to CLOs with the deal but could slow the pace at which its holdings are shrinking.
Representatives for Octagon and Nochu declined to comment.