JPMorgan raises CLO issuance estimate to $100bn

JPMorgan has increased its forecast for CLO issuance in the US this year to $100 billion, which if correct would make 2014 a record year.

In the first five months of the year, managers raised $46 billion of CLOs in the US, according to banking peer RBS. Standard & Poor's LCD puts the total figure for the year to 4 June at $49 billion across 90 deals.

Issuance for the full year 2013 reached $82 billion, according to RBS.

JPMorgan's recalibration comes after Wells Fargo raised its forecast to $90 billion in April having initially estimated $60 billion, while Morgan Stanley has predicted $85 billion in issuance after first forecasting $65 billion.

Morgan Stanley priced a new CLO raised by Oak Hill Advisors yesterday, garnering $777 million against an initial target of $622 million.

OHA Credit Partners X is structured as follows: $464 million of Class A at L+147; $94 million of Class at L+210; $38 million of Class C at L+310; $49 million of Class D at L+340; $50 million of Class E at L+515; $6 million of Class F at L+538; and $73 million of subordinated notes. The CLO has a two year non-call period, a four year re-investment period, and a 12 year final maturity, according to Fitch Ratings. 

Oak Hill's last CLO raised $519 million last October.