Year-to-date global CLO volume worth $59.1 billion has exceeded last year’s $55.7 billion and is now the new post-crisis record, according to JPMorgan Securities.
The number is also the fourth highest all-time record after 2006 at $135.8 billion, 2007 at $130.9 billion and 2005 at $66.8 billion, analysts from the firm said.
The bank also noted that CLO issuance in Europe saw a "boomlet" worth $2.8 billion (€2.1 billion) in the third quarter. This is compared to $3.1 billion (€2.4 billion) in all of the first half of 2013.
Analysts said that the European CLO supply has gone over their €4 billion 2013 estimate. They have now more than doubled their projection to €8-to-€10 billion.
However, they pointed out that European securitization activity in terms of the aggregate remains muted. Given this, more European ABS investors can now look to CLOs, depending on their respective mandates, analysts said.