April 04, 2014
March saw the largest monthly total since before the financial crisis.
Money pouring into leveraged loan funds drove the largest issuance of CLOs since before the financial crisis, according to S&P LCD. Issuance was $10.8 billion, the most since May 2007. CLOs are packaging and directing liquidity into the leveraged loan market, keeping rates low and allowing borrowers to demand loose terms.
Money pouring into leveraged loan funds drove the largest issuance of CLOs since before the financial crisis, according to S&P LCD. Issuance was $10.8 billion, the most since May 2007. CLOs are packaging and directing liquidity into the leveraged loan market, keeping rates low and allowing borrowers to demand loose terms.
Despite the heavy issuance in March, the first-quarter total was off a bit from the year-earlier period — $22.3 billion, down from $26.3 billion, respectively. Last year saw a record $82.6 billion of issuance, according to LCD.
The leveraged loan market actually saw 14.4% less new issuance in the first quarter, at $161.8 billion, than in the year earlier period, when what LCD calls a “refinancing binge” drove volumes to a post-crisis high. Volumes are lower this year due to a lower amount of near-term maturity loans that need to be refinanced.