CLO Outlook 2023 — Things can only get better
- Owen Sanderson
Let’s draw a veil over the CLO market in 2022. Last year’s 9fin CLO Outlook bore the unfortunate title “From strength to strength; CLOs in 2022”, which seemed like a plausible headline at the time, but which has not been borne out by market conditions which have veered between bad and worse for most of the year.
CLO tranches have been buffeted by the same winds which have affected other risk assets — central bank tightening, the shockwaves from the Russian invasion of Ukraine — plus some more securitisation-specific issues.