A CLO ‘grab’ for short-dated loans is buoying prices

Excess demand deepens as record CLO numbers wind down reinvestments


An unprecedented wave of collateralised loan obligations (CLOs) exiting so-called reinvestment periods is pushing up prices for short-dated loans.

CLOs buy around 70% of loans in the market. But many vehicles are facing tighter restrictions right now on the types of loans they can purchase, driving their managers to snap up short-duration loans at a premium.

“You’re seeing a massive grab for short-duration paper,” says Brian Yorke, CLO manager at Muzinich & Co. Demand is higher for loans

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