New issue CLO volume was $10.0bn in May, a substantial decrease from April’s multi-year record $15.7bn. Refi and reset volume came in at $2.0bn and $1.4bn, respectively, continuing at a much slower pace than in the same period 2018. The slowdown in new issues this month (and in the near term) was expected for a few reasons. First, the $15.7bn was a multi-year record in a year that was expected to be slower than recent years, and second, the “arb” continues to be challenged and therefore CLO creation is expected to be lower in the near term.
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