5.19.23
According to an article published by Bloomberg, collateralized loan obligation (CLO) market is facing rising funding costs and lower returns on investments. This has reduced CLO profitability and resulted in a decline in new CLO issuance, with volume falling 12% in Q1 2023 compared to the same period in 2022. Additionally, it has become increasingly difficult for issuers to sell the equity portion of CLOs, according to Eagle Point, with approximately 85% of CLOs priced during the first quarter being issued by CLO managers with captive equity vehicles.