What to Make of the Credit Cycle. Part 7.

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TCW Group recently released its Loan Review through April ‘18 and it is telling. Per the commentary:

CLOs represent nearly 50% of the buyer base for loans and April was a huge month for CLOs to be priced, reset and refinanced. There were 28 new issues and 32 resets and repricings, which set a monthly record for the market. Many CLOs require being reset on the coupon date, which led to April being an extraordinarily high month of issuance.

As of April, the CLO markets have printed $43 billion year-to-date, a 58% increase YOY. And per LCDNews, the markets have printed an additional $10+ billion in May.

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