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1Q Loan Investor Market: CLOs, Funds Dominate Leveraged Loan Mart Amid Investor Inflows

In the first quarter, asset managers’ share of leveraged loan allocations jumped to a record 90.3%, from 84.8% in 2012, amid an onslaught of institutional loan refinancings, which dominated primary activity during the opening months of the year.primary loan market allocation

Within the institutional investor segment, bountiful CLO issuance and inflows to loan mutual funds allowed these traditional investor constituencies to tighten their grip on primary institutional loan allocations. In sum, their share increased to 81.6% between January and March: 60.4% for CLOs and 21.2% for loan funds. That is the highest reading since 2002, up from 78.1% in the fourth quarter and 70.6% for all of 2012.

As reported, that CLO issuance continues at a healthy pace, with roughly $2.5 billion of vehicles priced in each of the last three weeks.

This chart is part of an LCD News analysis available to subscribers. Other charts in that analysis:

  • Pro-rata share of total volume
  • Share of new-issue institutional loan allocations by investor type
  • CLO volume
  • CLO share of primary institutional market for highly leveraged loans
  • Spreads and funding costs for CLOs
  • Number of fund managers that issued a CLO
  • Total net asset value of prime funds
  • Prime-fund outstandings and percent
  • Relative-value players’ share of primary institutional market
  • Number of loan investor groups


– Steve Miller

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