Loan issuance down sharply,
portfolio managers concerned about future supply
Source: Debtwire Par
In contrast to the high yield bond market, institutional loan issuance since the start of April is down sharply year-over-year, posting roughly a 50% decline. In turn, issuance has struggled to keep up with demand recently even though demand falls short of last year’s levels. US CLOs, the biggest buyers in the market, have been active in 3Q20 and the pipeline is robust, but new CLO volume has dropped by 38% year-to-date from the same period in 2019.