By: Brian Bejile, CEO, Octaura

Executing a large list, like a CLO liquidation, is a complicated process at best. At worst, it’s error-ridden and extraordinarily time-consuming.

The current approach involves several cumbersome and manual steps, including:  

→ Creating, cleaning and sending out Excel files 
→ Waiting hours for responses and chasing bids from multiple dealers via phone, e-mail or chat  
→ Communicating feedback to bidders 
→ Executing trades and notifying winners and covers 
→ Asking dealers for trade confirms 
→ Manually booking and correcting erroneous trades 

This process can take a seller hours – sometimes even days – to complete, while simultaneously locking up the rest of the market for the loan community. For sellers, this is valuable time that could be better spent on more strategic tasks. 

The growing problem 

We calculate that there were over 70 CLOs liquidated in the market in the first half of 2024 alone1. This is a substantial uptick from the two previous years, outpacing H1 2023 by a whopping 1,200%. These liquidations occurred over 56 days, meaning the loan market was likely locked up for about 450 hours across the first half of the year – a significant amount of lost time. 

Introducing Market Lists: A better solution 

At Octaura, we believe participants shouldn’t be spending 450 hours on exercises like this. Rather, they should have the opportunity to focus on the more strategic tasks on their plate. We know the loan market can operate more efficiently. 

This is exactly why we’re excited to introduce a new protocol called Market Lists, which can cut this process down from days to four hours or less.  

With Market Lists, sellers can: 

→ Reach the market faster: Send lists to their dealers of choice and make them simultaneously visible to the buyside, increasing efficiency. 
→ Customize stipulations with ease: Add stipulations at both the line item and list level by choosing from our suggestions or writing your own criteria. 
→ Monitor, compare and act quickly: Track responses in real-time, compare offers to internal targets, execute trades with the best terms available and provide color to dealers all within minutes – no more sifting through countless spreadsheets. 
→ Automated trade booking: When connected to an order management system, trades are automatically booked, saving time, eliminating manual trade booking and reducing errors. 

Want to see it in action?  

If you’d like to see how Market Lists can transform your CLO liquidation process, we’d love to set you up with a demo to show you how this tool can benefit your team. 

¹ Source: Octaura analysis of 2024 CLO manager trustee reports, provided by Moody’s.

Data is sourced from Octaura unless otherwise footnoted. while we strive for accuracy, we do not guarantee the completeness or correctness of the information provided or for the results obtained from the use of this information. This communication is not a recommendation to buy or sell any loan product and should not be construed as such. Features are accurate as of the date presented and subject to change without notice.