Morgan Stanley Investment Management has announced the closing of its first collateralised loan obligation (CLO) of 2025, at $400m (£300.3m).

The Morgan Stanley Eaton Vance CLO 2025-21 was priced on 7 March and increases the firm’s CLO platform assets to approximately $7.5bn across 20 vehicles.

The firm said that attractive market conditions and robust interest for tier-1 collateral manager profile underpinned strong institutional demand.

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“We’re excited to be back in the new issue market and are encouraged by the interest from both new and existing investors,” said Steve Sebo, head of CLO structuring and capital markets at Morgan Stanley Investment Management.

“Closing this deal is a great step forward as we continue to build our CLO business.”

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“Navigating the difficult dance of risk and return across the capital structure and within the asset pool has always been the core of our approach,” added Ed Greenaway, head of CLO portfolio management at Morgan Stanley Investment Management.

“The recent volatility within the market presents challenges but also opportunity for equity and debt investors alike.”

Wells Fargo Securities served as sole arranger for the deal.

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