NSCP CURRENTS: Compliance Implications for CLO Managers
February 2019 by Joseph DiBartolo and Guy F. Talarico
In 2018, Collateralized Loan Obligations (“CLOs”) were the biggest buyers of leveraged loans. “More than $121 billion of US CLOs have been raised as of November 23, just behind the all-time high of $123.6 billion in 2014, according to LPC Collateral data. An additional $146 billion of CLOs have been reset, refinanced or reissued in 2018 to date.”1 The question you may be asking is what are CLOs? And, how did they grow to become a major provider of capital to U.S. companies?