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Record in Sight for Europe CLO Market After Loans Rush

  • Better loan supply may boost CLO issuance in final months
  • 14 new CLOs need to price to match last year’s total

The market for one of Europe’s more complex but vital asset classes may be on the cusp of another bonanza year.

The region’s supply of collateralized loan obligations -- debt securities made up of groups of leveraged loans -- is poised to jump from September, potentially boosting issuance beyond the record 16.8 billion euros ($19.6 billion) seen in 2016. A healthy pipeline is already building, while last month’s barrage of fresh loans should help banish the shortage of underlying assets that has plagued the industry this year.