Europe’s CLO Managers Shift to Ireland Despite Dutch Tax Waiver

An eleventh-hour decision by Dutch authorities to delay implementation of a tax on collateralized loan obligations came too late for a majority of managers migrating to Ireland from the Netherlands.

The authority’s six-month extension of a tax waiver due to expire on Jan. 1 was announced in mid-December. But data from Atlantic Star Consulting show that at least 16 managers had already began to migrate Dutch SPVs to Ireland after an industry attempt to appeal the ruling was rejected in October.

Just seven CLO transactions from four managers remain in the Netherlands as of Jan. 1, the consultancy revealed. Prior ...