Fitch: New U.S. CLO Issuance Surpasses 2012; Rate Continues to Slow

Reuters

Nov 8 (Reuters) - (The following statement was released by the rating agency)

Thanks to a strong third quarter, new issuance of U.S. CLOs this year has now outpaced all of 2012, though the rate of new deals continues to trail off, according to Fitch Ratings in its latest quarterly newsletter.

Fitch reports 27 broadly syndicated U.S. CLOs totaling $13.2 billion came to market during third-quarter 2013 (3Q'13). 'August was most active month of the third quarter, with 12 deals pricing for a total of $6 billion,' said Senior Director Derek Miller. The 3Q'13 tally brought 2013 new CLO totals for 2013 to $57.1 billion from 115 deals, surpassing the number seen in all of 2012 ($51.9 billion from 111 deals) .

That said, quarterly issuance has decreased again. In fact, new CLO issuance has declined every quarter this year ($17.5 billion in 1Q'13 and $15.4 billion in 2Q'13). 'While investor appetite for new CLOs remains strong, the slow drop-off may be indicative of investors already filling their 2013 allocations and waiting to adjust their allocations in the new year,' said Miller.

Fitch's latest 'CLO Market Quarterly' newsletter is available at 'www.fitchratings.com' or by clicking on the below link.

Link to Fitch Ratings' Report: CLO Quarterly: 3Q13

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