Wariness surrounding inflation and rising interest rates are pushing investors into more floating-rate debt, and should drive investor appetite for the white-hot CLO market, market participants say.
“We expect to see a greater appetite for floating-rate investment grade paper, which will maintain the strong appetite for CLO liabilities and drive continued CLO issuance,” said Ryan Kohan, head of bank loans at Western Asset Management, in the specialist investment manager’s recent call with portfolio managers.
