While strong issuance so far this year has given rise to expectations that the European securitization market’s recovery could accelerate in the second half, 2021 is not just a rebound story. Investor demand and regulatory change are also driving new developments and innovations, say BNY Mellon’s Paul Crossley, senior business development, principal, EMEA, and Michela Sperandio, head of business development, Italy.
The period since March has been a turbulent time for financial markets, and the CLO sector in Europe dealt with a complex set of disruptions when the pandemic arrived this spring. From sudden and acute stress at the corporate level to an unprecedented shift in working conditions, CLO players in Europe experienced more uncertainty that hasn’t been seen since the last crisis. Yet, the market has adapted, and while the shape and size of deals may be different, CLOs in Europe are pushing ahead. BNY Mellon and GlobalCapital gathered a variety of market experts to discuss the present state and future prospects of the European CLO market.