ARTICLE
1 August 2013

CLO Insider: Appleby Report On The CLO Market (January - June 2013)

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Appleby

Contributor

Appleby is one of the world’s leading offshore law firms, operating in 10 highly regarded and well-regulated locations. We provide comprehensive, expert advice and services across a number of key practice areas. We work with our clients to achieve practical solutions whether from a single location or across multiple jurisdictions.
A report which provides data, insight and analysis on the global Collateralised Loan Obligation market.
Worldwide Finance and Banking

Please find attached our latest Appleby report which provides data, insight and analysis on the global Collateralised Loan Obligation (CLO) market.

There are a number of key themes that emerge from the statistics:

  • 98 CLOs closed in the first half of 2013, compared to 78 in the preceding six months, and a massive 151% increase on the 39 closed in the same six months in 2012. 
  • There was US$47bn of issuance in the first six months of 2013 alone, making it the biggest half year in CLO's/CDO's ever.  This showed a continued growth in the market from the end of 2012, but also reflected the new FDIC deposit insurance rules that came into effect on 1 April 2013, which compressed deals into the first quarter of the year. 
  • Average deal size grew by 4% (US$20m) between the last six months of 2012 and the first six months of 2013. 
  • The top ten deals by value for the first half of 2013 represented 16% of the value for all deals during the period. Average deal size for this group increased by US$40m over the preceding period, and a significant US$175m over the same period in 2012.
  • Spreads on AAA's for the quality issuers have narrowed from around 140 at the end of 2012 to nearer 115 in June 2013.
  • A core set of Arrangers are dominating the CLO market, with Citigroup leading the ranking for the period January - June 2013.

Please click here to read the report.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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