New issuance of collateralised loan obligations (“CLOs”) rose last year to its highest level since the credit crunch. 2013 saw U.S. CLO issuance rise to about US$81 billion, from US$54 billion the year before while European CLO issuance leapt to about €8 billion from zero during the same period.

Market participants expect this momentum to carry on into 2014. Headwinds including competition from the high-yield market and direct-lending funds, as well as on-going adjustment to regulatory hurdles, are expected to be balanced by a continuation of reasonable economics, with new issuance predicted to reach a similar level to the previous year.

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Topics:  AIFMD, Audits, Collateralized Loan Obligations, EU, Investment Funds, Reporting Requirements, Value-Added Tax, Withholding Tax

Published In: General Business Updates, Finance & Banking Updates, International Trade Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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