CLO Active Credit Lines Near 200, Paving Way for Market Rebound
- AAA spreads still too wide for CLO deal rush to materialize
- So many warehouses on deck bodes well for sales to rebound
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Banks stand ready to lend billions of dollars to money managers to buy leveraged loans to be packaged into collateralized loan obligations when markets calm and slumping sales rebound.
There may be close to 200 active lines of credit, or warehouse lines, financing CLOs now, John Clements, head of the U.S. CLO business at Barclays Plc, said in an interview. This is roughly on par with the record number of warehouses opened last fall, which telegraphed what turned out to be an all-time high for CLO sales in 2021.