Short CLO deals belie uncertain economic outlook

Olivier Tabary/Olivier Tabary - stock.adobe.com

A handful of new issue CLO deals to debut in 2019 have been structured with shorter non-call and reinvestment periods. While that may reflect a bearish economic outlook in the medium-term, some market watchers chalk it up to the sell-off in the loan market last autumn and bets on the shape of the yield curve.