Perhaps not surprisingly, CLO managers last year found themselves dipping into the same pot of securities in order to ramp up their deals at a higher rate than in recent years, according to an analysis by JPMorgan Securities released last week.

The issuance of CLO deals has outpaced the availability of new collateral to back them, fueling increasing overlap between U.S. CLOs in recent years - but whether the concentration is good or bad depends on the quality of collateral or names being cherry picked, and on the competence of the CLO manager, according to JPMorgan.

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