Leveraged loan market players made the optimistic prediction last week that CLOs would return to the loan market stage by January or February of 2008. The topic was one of many discussed by market participants at the 13th annual Reuters Loan Pricing Corporation Gold Sheets conference.

Most agree that the deals in the pipeline need to be completely or mostly cleared before CLOs can begin ramping up. "The fourth quarter will be interesting because we're seeing the buy and sell side coming together to see how they can get rid of what is already on the books," said Hugh Gravenhorst, managing director at Black Diamond Capital Management.

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