According to Leveraged Commentary & Data (LCD), a unit of Standard & Poor's, leveraged loan issuance is down by half versus last year, which S&P analysts said is potential constraint for CLO issuance.

S&P analysts stated that corporate issuers have been using the high yield market more, where issuance has increased roughly 30% year-to-date. Longer durations at low fixed coupons make the high yield option attractive compared to floating rate loans, they stated.

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