Blackstone Looks to Wind Down Fund Holding Riskiest CLO Parts

The directors of a Blackstone fund that holds parts of collateralized loan obligations are looking to close down the vehicle following a sustained slump in the stock price of the listed fund.

Blackstone Loan Financing Limited said in a statement on Friday that it’s asking shareholders for approval to wind down the fund because of factors including the fact that its shares trade at a relatively high discount to the value of the underlying assets, and the liquidity of those shares. Blackstone Loan Financing traded at a 23% discount to net asset value as of June 26.

“While the company’s ...