The SFVegas 2020 conference from 23-26 February will bring together structured finance industry professionals to discuss the outlook for CLOs. Ahead of the event, Deutsche Bank’s Steve Hessler assesses how general improvements in the global economy and a broadening of collateral types could propel the industry forward
The global collateralised loan obligation (CLO) market eased into the new decade with only five new issuances in the first month. The US market produced only four deals in January 2020, down from seven at the same time last year, while Europe replicated last year’s performance with just one deal1 .
Elucidating the dearth in new issuance, one collateral manager shared that typically they have high single-digit CLO warehouses open at a time. However, so far in 2020, they have “only” four. While four is generally ambitious for most managers, it prompts the question: how many CLOs will be issued in 2020? Within these currently tepid waters, structured finance professionals at the SFVegas conference 23-26 February will consider what could stimulate the issuance outlook for 2020.