As is often the case when looking into the future, we have some good news and some bad news regarding the leveraged loan market in 2010. The bad news, though hardly a surprise, comes in the form of returns - much lower ones. The good news is the expectation that primary issuance will jump, with some market participants portending the return of the CLO.
According to Barclays Capital estimates, U.S. institutional loan volume should hit somewhere between $70 billion and $80 billion in 2010. And analysts at Bank of America predict total U.S. leveraged loan volume will reach as high as $106 billion.