CLOs Face Lowest Profitability in Years

The video discusses the current challenges in the CLO market, focusing on the lack of spread between loans and liabilities, which is slowing down issuance. This issue is not limited to the US but is also affecting Europe. Captive equity vehicles are being used by large managers to continue issuing CLOs despite the unfavorable market conditions. The video also highlights the global nature of the problem and the strategies employed by big managers to navigate the market.

How does the current spread between loans and liabilities affect equity buyers?

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What factors are contributing to the slowdown in CLO issuance?

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What challenges do companies face when trying to issue loans in the current market?

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In what ways is the CLO market's current situation a global issue?

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What are captive equity vehicles and how are they impacting the CLO market?

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