U.S. CLO Issuance Hits January Record

The year in CLOs started off with the highest January on record; 33 deals totaling nearly $14 billion. The robust activity stems from improved deal economics as credit risk spreads have tightened from wider levels. February promises to continue with a reported 40 deals in the pipeline, some from managers who have been absent from the market since 2022. Anticipated transactions include resets, broadly syndicated loans and one middle market deal.