March 24, 2025 – Arbor have closed 2 CLOs this month, announcing that loans will be placed in allegedly cheaper repo lines. This report will show that cheaper financing is nothing but a fairytale woven by management.
Arbor performance has continued to rapidly deteriorate, as ~$600m modified loans are re-modified and granted enormous concessions. Various other loans are placed on workout strategies.
- ARCREN 2021-FL1 and 2022-FL2 have been wound up, and loans moved to repo lines.
- Arbor has modified $4.7b of loans and holds ~$750m of delinquent loans and continues to cure the true value of its delinquencies by modifying loans month-on-month.
- On March 13, 2025, Arbor announced that it closed a $1.15b repo facility to unwind 2 CLOs, claiming that the Repo pricing is “well below the CLOs being redeemed”. This appears to be patently false.
- Arbor claims that the loans are “primarily non-recourse to the company”. This suggests that the credit risk of the loans are transferred to the repo lender. It is unfathomable that the repo lender would onboard credit risk associated with Arbor’s garbage CLO portfolio at below market rates.