European CLOs Notch Up One More Record in Year of Superlatives

Europe’s collateralized loan obligations market continued its vigorous march in the last quarter of 2017.

New issue volume climbed to 7.22 billion euros ($8.7 billion) in the three months ended Dec. 31, according to Bloomberg data, the biggest quarterly increase since the financial crisis. This took the total for 2017 to a decade high of 20 billion euros as both the issuer and investor base expanded.

Quarterly High

November's record CLO supply boosts final quarter to new record

Data compiled by Bloomberg

Fourth quarter supply was boosted by November’s hefty 4.74 billion euros of new issuance, itself a post-crisis monthly high, as 11 new issues priced during the month. Through the fourth quarter 17 new CLO issues in total priced, with three new CLOs for 1.34 billion euros pricing in October and another three pricing in December for 1.14 billion euros.

Other records achieved last year include the biggest annual CLO new issuance since the crisis, era tight spreads and the largest post-crisis transaction.

READ: Four Themes to Watch in European CLOs After Groundbreaking Year

— With assistance by Alejandro Sicilia Cruz

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