Bank Collateralized Loan Obligations: An Overview
نویسندگان
چکیده
Collateralized loan obligation (CLO) volume has increased significantly over the past two years (see chart, page 2). Third-quarter 1997 issuance hit a record-breaking $25.5 billion, more than doubling the 1996 volume of $11.5 billion. Furthermore, by year end, it is estimated that the total volume for collateralized bond obligations (CBOs) and CLOs will reach $35 billion– $40 billion. With larger growth potential than other securitized assets, CLOs will become a permanent part of the asset-backed securities (ABS) market. The market for CLOs is already international in scope, with loan portfolio securitizations by banks in the U.K., France, Netherlands, Japan, and the U.S. and interest from banks in other countries as well.
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