BofA Merrill Lynch raises CLO deal forecast for year; Oak Hill refinances €390.4 million CLO

By Cristal Cody

Tupelo, Miss., July 3 – CLO primary and refinancing activity remains strong, leading market analysts to revise their 2017 issuance forecasts.

BofA Merrill Lynch analysts said in a note released on Monday they have raised their U.S. CLO issuance forecast for the year to $90 billion from $60 billion.

Wells Fargo Securities LLC analysts also in June raised their new deal forecast to $85 billion for the year.

“Despite the hurdle introduced by risk retention rules, the U.S. CLO manager landscape has remained vibrant,” the BofA Merrill Lynch analysts said. “Year to date, 90 BSL [broadly syndicated loan] and middle market CLOs totaling $50.9 [billion] have priced, with monthly issuance volume substantially exceeding 1H16's monthly levels due to improved market conditions.”

In European CLO market action, Oak Hill Advisors (Europe), LLP sold €390.4 million of new and refinanced notes in 10 tranches in a refinancing of a 2015 CLO.

More than €10 billion of vintage European CLOs have been refinanced year to date, according to market sources.

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