Glen Fest

Octaura is expanding from its syndicated loan platform that has operated since 2022.

The firm now sees US CLO new-issue volume of $150 billion for 2025, down from the original $180 billion projection.

Managers and investors shrugged off recessionary worries to post one of the busiest first-quarter periods of new-deal issuance in market history.

The ETF, managed by State Street and sourced by Apollo, will hold up to 35% of its assets in private credit.

Barclays strategists reported a record $1.2 billion in net inflows to the ETFs the week of Jan. 17.

BofA Securities, Morgan Stanley, Deutsche Bank, BNP Paribas and JPMorgan all project more than $200 billion in new primary-market deals in 2025.

The previous full-year record was set in 2021.

CTM Asset Management, led by Thomas Flannery, will print and actively manage new-issue US CLOs.

An increased number of obligors assessed by Moody’s have worsening liquidity and interest-coverage cushions, as well as rising default rates, contributing to weakening loan-issuer credit profiles.

In raising its forecast, the firm cited the “ferocious pace” of broadly syndicated loan CLO pricings so far this year.

US issuance is on a record-pace year-to-date, although JP Morgan analysts do not expect managers to equal 2021’s record full-year mark.

US issuance is on a record-pace year-to-date, although JP Morgan analysts do not expect managers to equal 2021’s record full-year mark.

The decision leaves intact a federal appeals court ruling that leveraged loans are not subject to securities laws, including SEC disclosure requirements.

Nine middle-market CLOs tracked by Fitch and within their reinvestment period were failing at least one ratings agency’s CCC+ concentration limit, noted Fitch.

Nine middle-market CLOs tracked by Fitch and within their reinvestment period were failing at least one ratings agency’s CCC+ concentration limit, noted Fitch.

The BSL projection is below LCD’s year-to-date 2023 tally of $77.7 billion, but the private credit volume would represent a calendar-year issuance record for MM CLOs.

The BSL projection is below LCD’s year-to-date 2023 tally of $77.7 billion, but the private credit volume would represent a calendar-year issuance record for MM CLOs.

The massive CLO vehicle is an indication of increased investor appetite for risk in a revitalized US leveraged loan asset class.

CLOs will be exempt from new private-fund rules adopted by the SEC, alleviating industry concerns about compliance and portfolio management hurdles in the loan market.

CLO issuance is expected to be "muddled" for the remainder of the year, but middle-market and private-credit CLOs will continue to take a larger market share.