CLO Monitor
CLOs delivered positive returns across the capital stack in August, although select mezzanine tranche gains were minimal.
CLO Monitor
CLOs delivered positive returns across the capital stack in August, although select mezzanine tranche gains were minimal.
Contents
The JP Morgan CLOIE Index reported August returns of 0.49%(AAA), 0.60% (AA), 0.67% (A), 0.40% (BBB), 0.04% (BB), and 0.06% (B), and the Credit Suisse Leveraged Loan Index returned 0.60%, recovering from a low of -0.63% early in the month. Market caution impacted the primary loan market, where institutional loan issuance plummeted in August, with only $7.3 billion issued. This marked the lowest monthly total since December 2022. New CLO origination, on the other hand, has remained steady, rebounding from June’s monthly volume low, with$14.9 billion of new issuance in August. This brings year-to-date volume to about $130 billion, which has already exceeded 2022 levels (~$129 billion) and leaves the door open to exceed 2021’s record $187 billion issuance.
The JP Morgan CLOIE Index reported August returns of 0.49%(AAA), 0.60% (AA), 0.67% (A), 0.40% (BBB), 0.04% (BB), and 0.06% (B), and the Credit Suisse Leveraged Loan Index returned 0.60%, recovering from a low of -0.63% early in the month. Market caution impacted the primary loan market, where institutional loan issuance plummeted in August, with only $7.3 billion issued. This marked the lowest monthly total since December 2022. New CLO origination, on the other hand, has remained steady, rebounding from June’s monthly volume low, with$14.9 billion of new issuance in August. This brings year-to-date volume to about $130 billion, which has already exceeded 2022 levels (~$129 billion) and leaves the door open to exceed 2021’s record $187 billion issuance.