jbancroft@imfpubs.com

New issuance of collateralized loan obligations rose smartly during the second quarter despite a slowdown in refinancing transactions, according to a new Inside MBS & ABS analysis.

A total of $38.62 billion of rated CLOs was issued in the second quarter, up 22.9% from the first three months of the year. That brought year-to-date production to $70.04 billion, down 8.6% from the first six months of 2018.

Some $55.78 billion of CLO issuance this year has been new transactions backed by senior secured and leveraged loans, including middle-market transactions. These transactions accounted for 79.4% of total issuance for the first six months of the year, and volume was up 20.5% from last year.

At the same time, only $5.93 billion of refinanced CLOs has come to market, a 75.2% drop from the first half of 2018. For more details and exclusive tables, see Inside MBS & ABS, now available online.