Europe’s CLO Printing Machine Enters a Negative Feedback Loop
- Tepid loan supply, well bid secondary hamper asset selection
- Equity investors want fuller portfolio at time of CLO pricing
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Collateralized loan obligations in Europe are running low on fuel, prompting some investors to seek greater protection that may slow the market even further.
Just two new vehicles have priced since the end of July as the volume of leveraged loans, which a CLO manager repackages into debt and equity tranches for investors, trails last year’s tally by more than a fifth.