US CLO rally imminent, Wall Street analysts predict

By Alexander Saeedy
07 May 2019

After the biggest month for new issue CLO supply since the market was created in the 1990s, Wall Street researchers have predicted that new issue spreads will grind tighter in the near-term, as secondaries come in and CLO formation is challenged by low loan supply.

Based on JPMorgan figures, last month was the biggest month ever for US CLO deals in the primary market, with new issues totalling $15.7bn. The second and third busiest months for new issue US CLOs were March 2015, with $15.2bn, and June 2017, at $15bn.

However, even with ...

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