US insurers tap CLO market as banks retreat

Widening spreads lure insurers

Former Fed chairman, Paul Volcker, architect of the Volcker Rule

US insurance companies are increasing their exposure to collateralised loan obligations (CLOs), as banks retreat from the market in the wake of new regulations.

Insurers have been lured by widening spreads on CLO tranches since the end of last year, as demand from banks has plunged amid concerns that investments in some structured securities will be disallowed under the US Volcker rule, which bans proprietary trading. Spreads have increased by as much as 15 basis points.

"We are positive on

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options

If you already have an account, please sign in here.


Want to know what’s included in our free registration? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here