CLO Market Performance and Predictions for 2025

The CLO market experienced one of its most active years, with issuance volumes approaching $190 billion and significant records in private credit CLO issuances. Predictions indicate a continuation of this trend into 2025, with expectations of $215 billion in total issuance, consisting of $50 billion in private credit CLOs and $160 billion in BSL issuances. The renewed regulatory environment is expected to promote increased M&A and LBO activities, which will provide necessary collateral for CLOs. This optimistic outlook, however, hinges on the ability of the leverage loan finance teams to deliver the required collateral.