But while BSL is down, it almost assuredly is not out. CLO formation and demand will return, particularly as AAA spreads come in, the BSL market will become more attractive – recall that BSL traditionally offers thinner margins to borrowers – and refinancing and market share may shift back toward BSL at that time. And so, as many have noted, BSL and PC are simply two parts of the continuum that is the leveraged loan market.
