As did ABN Amro's Loop Funding MT-I in June, other balance-sheet collateralized loan obligations (CLOs) will likely pay out and reissue new series off the same master trust - a prepayment event unrelated to credit, said industry sources.

The reason: the older balance sheet CLOs were generally structured with three-year revolving periods and a call option at the end of the term. The first wave of such CLOs hit the market in 1997.

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