Collateral damage

European CLO Market

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With issuance so far this year at EUR14.18 billion, the European collateralised loan obligation (CLO) market has already surpassed last year's total of EUR10.55 billion. A confluence of factors - a large supply of assets coming from private equity and bank sponsors, hedge funds setting up CLO operations and US asset managers launching European deals - is driving growth. But as quickly as this market is growing, so are the questions about its sustainability and deal quality.Demand from CLO ma