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Philippe Jodin Benedicte Gravrand, Opalesque Geneva:

European collateralized loan obligations (CLOs) are experiencing a revival in issuance this year, after the shrinkage of 2009-2015. This is benefiting credit managers who stuck to their guns through the financial crisis.

The region’s pool of outstanding CLOs has increased by €5.69bn ($6.2bn) this year to €69.3bn, according to data compiled by Barclays Plc in October. Bloomberg also reported that the annual total of CLO issuance will probably surpass €15bn this year - up from €13.8bn last year and €14.4bn in 2014.

The 2008/09 crisis originated in the securitised market, specifically in the subprime market which dragged down all other securitised products, Philippe Jodin, partner at Swiss-based Alegra Capital, told Opalesque. "The whole market went through a major correction with many investors retreating from the asset class. While default rates in the leveraged loan space crept higher, they never reached a level that would have justified such depressed price levels."

"In Europe, the CLO market started being effective again in 2013, i.e. as such issuing what are called CLO 2.0 securities. Since then, the European CLO market has been rather stable, picking up pace slowly but sur......................

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