European collateralised loan obligation (CLO) issuance in 2025 is on track to potentially reach the highest levels since the great financial crisis, according to an industry update by asset manager Kartesia.
Driven by exceptionally strong new issue activity and a robust pipeline of resets, the European market is seeing strong momentum with year-to-date volumes increasing 160 per cent, compared to the same period last year.
Read more: CLO market sees strong start to 2025
“While concerns persist around the availability of underlying loan supply, current market conditions present a compelling backdrop for sponsors,” said Michael Htun and Panagiotis Dounavis, respectively Kartesia’s head of CLOs and the firm’s structured credit manager.
“With equity markets at all-time highs and credit spreads hovering near local tights, the environment appears particularly favourable at the moment,” they added.
Read more: CLO issuance volumes hit €10.8bn
Kartesia’s assessment states the CLO landscape recorded strong activity in September, with new issuance volumes reaching €5.6bn (£4.9bn), from the €1.7bn (£1.5bn) recorded in August.
Read more: Arini prices European CLO VII at €615m
