The collateralized loan obligation market has snapped back briskly, with a $620 million vehicle from The Carlyle Group capping a year when U.S. volume was on track to nearly quadruple to more than $50 billion in new CLO issuance.
The story went on to identify a huge wave of corporate credit refinancing.
But the leveraged loan market will need continued health in this instrument. According to Mark Okada, co-founder and chief investment officer at Highland Capital, 90 percent of existing CLOs will come to the end of their reinvestment periods by the end of 2014, 80 percent of them by the end of 2013.
Is this why Fed Chief Ben Bernanke is printing money like a madman, so PEU affiliates will find refinancing? Will securitized corporate credit implode again?
