CLO market players will be more discerning about transactions in the second half of this year, according to panelists at a Loan Syndications and Trading Association seminar held in New York last Wednesday. The participants highlighted the recent slowdown after $57 billion in CLOs were issued in the first half of 2007.

After the first news of the subprime blowup in February, the credit markets were lulled into a sense of security only to wake up several months later to discover it was worse than expected, panelists said. The subprime fallout has even affected some investors with portfolios that are tied to the leveraged loan market.

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.