LA-based $25bn credit hedge fund firm Canyon Partners has closed two collateralised loan obligations totalling over $1bn – the €550m European CLO, Canyon Euro CLO 2023-1, and the $500m US CLO, Canyon CLO 2023-2.

Both will be managed by the firm's affiliate Canyon CLO Advisors.

The deals, the fifth and sixth CLOs for Canyon CLO Fund III, were arranged by Jefferies and Deutsche Bank and bring the number of Canyon's actively managing CLOs to 21, totalling nearly $10bn in combined CLO/par loan separate account AUM.

Both Canyon Euro CLO 2023-1 and Canyon CLO 2023-2 have a 2-year non-call period and 5-year reinvestment period and were structured to comply with European risk retention regulations.

Canyon Euro CLO 2023-1 is the largest CLO to clear the European market since November 2017 and the sixth largest European deal ever, according to a press statement. This is the firm's second European CLO since its debut in the market in 2023 and brings Canyon's European CLO AUM to approximately €1bn.

Canyon CLO 2023-2 represents Canyon's first US new issue CLO of the year.