Collateralized loan obligations (CLOs) are becoming victims of their own success.

Spreads in the primary market have tightened so much over the past couple of years that holders of the most subordinated tranches of CLOs (also called the “equity”) that were issued as recently as 2011 are expected to call them this year in order to fund new deals more cheaply.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.