EU CLO Issuance: Records, Drivers, and What Could Disrupt the Momentum
New EU CLO issuance rose by around 24% year on year to approximately EUR 60 billion in 2025, building on...
New EU CLO issuance rose by around 24% year on year to approximately EUR 60 billion in 2025, building on...
2025 is on course to be another record-breaking year. This article explores some of the key ingredients behind strong primary issuance.
As shown in the table below, it is hardly surprising that a robust underlying loan market, coupled with many CLOs...
As illustrated in the table below, it is unsurprising that when the underlying loan market was strong, more CLO deals were liquidated, institutional loan issuance increased—providing additional collateral assets for CLO creation—and demand for CLOs grew as investors became more optimistic about the credit outlook. Combined with a higher interest rate environment and greater demand for floating-rate assets, these factors contributed to a record-breaking year for new issue CLO volume in 2024.
