As of Thursday mid-day, the U.S. CLO market continued to await its first new deal of 2018. There is in fact a large pipeline of new CLOs, but they are competing against a number of resets trying to get done by the January payment date, LCD noted. Happily, this respite gives us time to reflect on 2017, recap the major trends, contemplate the evolution (or revolution) in the CLO market and consider what may be on tap for 2018 and beyond.
After we all feared that risk retention would materially hamstring the CLO market, 2017 has gone in a rather different direction. In fact, with several work weeks remaining this year, new 2017 U.S. CLO issuance has hit $107 billion, edging past 2007 to become the second most active year on record. And that’s just if one considers new issuance.
SFIG Vegas, the major West Coast securitization conference, had a different – and much happier – tone this year. This change was detailed in a Leveraged Loans and CLO Outlook Panel moderated by LSTA EVP Meredith Coffey.
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