Talk of leverage spikes as returns shrink in CLO debt
Spreads keep tracking tighter in senior triple-A CLO paper, narrowing investor returns in a busy market and driving talk of leveraging bonds throughout the debt capital structure.
With $92.86bn of new CLOs sold this year, volumes have almost doubled compared to 2016, and with still two months of the year to go the market is easily on track to beat the $99.07bn sold in 2015, according to Wells Fargo data.
Investor demand — domestic, European
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