The current buoyancy underlying the U.S. CLO market can be attributed to a number of issuance friendly factors, not the least of which is significant interest from new buyers, market participants say.

Following the financial crisis, the principal investors in CLOs, most notably SIVs or structured investment vehicles, disappeared. As the market slowly and sporadically recovered during 2010 and 2011, deals were largely completed thanks to a small number of triple-A buyers and the capacity of managers, often affiliated with private equity shops, to bring the equity to deals.

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