Norinchukin Bank, a Japanese bank and an “anchor investor” in AAA-rated CLO bonds, has paused purchasing new CLOs in U.S. and Europe. The move was likely the result of “profound” volatility in the global markets. The loss of such a key buyer, even temporarily, could make new CLO issuance “even more challenging,” according to market participants, but is not expected to be a permanent exit. CLOs have been under pressure as UK pension funds have been rushing to sell their assets, including CLOs, to meet margin calls that were brought on by an announcement of sweeping tax cuts in the UK.