Collateral damage

The European collateralised loan obligation market is experiencing unprecedented growth, with established and first-time managers pricing deals. Despite this enthusiasm, concerns surrounding overlap in collateral pools and the ability to source assets are mounting. By Rachel Wolcott


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

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