Issuance of Bundles of Risky Loans Jumps to 16-Year High
Wall Street Journal, May 24, 2021–Sebastian Pellejero (subscription)
The prospect of rising inflation and a shift away from the Federal Reserve’s easy money policies are making bonds tied to so-called CLOs attractive to a wider range of investors, analysts said. Many are expecting strong growth to prompt Fed tightening, eroding returns on corporate bonds. Yields on CLO bonds typically rise with interest rates.