Focus on CLO resets could drag on new issue volumes, say sources

By David Bell
06 Jun 2018

The rush of US CLO managers looking to extend existing deals on the back of risk retention rules being vacated might take some of the steam out of the new issue CLO market in the second half of the year, say some market players.

CLO resets, which reprice the debt on existing portfolios as well as extending the deal's reinvestment period, have jumped to $27.2bn in the year to date, up from $12.2bn during the same period last year, according to Wells Fargo’s senior CLO analyst Dave Preston.

The new issue market ...

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