Fixed Income
CLO Equity Holders Reset Deals at Record Pace: Credit Weekly
- More than $26 billion of CLO resets priced in August
- Resets are making up a larger piece of the CLO issuance pie
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Investors in the riskiest portions of collateralized loan obligations are seeing their returns get juiced thanks to the biggest wave of resetting on record.
Resets, a form of refinancing for CLOs, surged to a US record of more than $26 billion in August, according to data compiled by Citigroup Inc. that dates back to 2015. That’s a huge jump from the previous record for a month set in June, when they exceeded $20 billion for the first time.