US CLO issuance bouncing back in 2011, say experts

While CLO activity remains below pre-financial crisis levels, a demand for higher yields is driving US investor appetite

otis-casey
Otis Casey, Markit

While it might be an exaggeration to place the words 'rude', 'health' and "collateralised loan obligation" (CLO) in the same sentence, the CLO market in the US has experienced a resurgence recently, with the amount of CLOs backed by syndicated loans issued this year – $3 billion – close to surpassing last year's entire take, according to data compiled by Bloomberg.

In turn, the $3.4 billion worth of CLOs that US banks sold in 2010 was more than double the $1.22 billion taken in 2009. Otis Casey

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