Leveraged loan prices blocking new CLO pipeline
The US CLO market is off to a slow start and managers are expecting more of the same through the first quarter of the year, as tightening in the leveraged loans market puts pressure on the economics of issuing new deals.
Loans in the secondary market are trading well above face value, and primary loan supply continues to be dominated by refinancing rather than a new production of leveraged loans.
As a continuation of a dominant theme in 2016, this has had a knock-on effect on CLOs, and many
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