Global Collateralized Loan Obligation Market Set to Reach $2.71 Trillion by 2028, Elevating Financial Infrastructure Landscape - ResearchAndMarkets.com

The "Global Collateralized Loan Obligation Market: Analysis By Value, By BWIC Value, By Issuance, By Sector, By Rating, By Type, By Investor Base, By Region Size, Trends and Forecast up to 2028" report has been added to ResearchAndMarkets.com's offering.

Expanding Global CLO Market Offers Insight into Technology Sector Dominance and U.S. Market Maturity

In a major development within the structured finance industry, the latest market analysis reveals that the global Collateralized Loan Obligation (CLO) market is on a pronounced upward trajectory, expected to significantly surpass the trillion-dollar mark to reach an estimated value of US$2.71 trillion by the year 2028. This equates to a compounded annual growth rate (CAGR) of approximately 14% from 2023 to 2028, marking a period of robust growth and continued investor interest in this asset class.

The new market findings suggest several key segments and regions are driving this growth. A particular highlight within the segmented analysis is the technology sector—holding the lion's share of the market due to its strong fundamentals and appealing characteristics for investment opportunities. As the technology industry continuously drives transformation and economic growth, CLO investments within this sector are particularly poised for growth.

Regional Developments and Market Innovations Propel Growth

The United States remains the dominant force in the global CLO market, maintaining the highest market share proportion. Its well-established financial ecosystem and favorable legal and regulatory frameworks provide a fertile ground for CLOs and their underlying leveraged loans.

Structured into a range of sovereign credit ratings, the AAA through Equity ratings scale offers a comprehensive understanding of investor appetite across investment grades. These ratings highlight that AAA-rated CLOs continue to attract a significant share of the market, with compelling demand due to their high credit quality and lower associated risks.

Investment-grade (IG) CLOs show a consistent rate of attraction in the U.S., especially among risk-averse investors, while the broader CLO market is also seeing a rise in non-investment-grade and equity CLOs, indicating a diversified investor base with varying risk appetites.

Favorable Market Dynamics and Pandemic Recovery Define Sector Path

The expansive growth predictions are supported by a plethora of market dynamics, including the increasing size of the leveraged loan market, the rise in private debt, and the growing adoption of innovative technologies, which collectively fuel market expansion and diversification.

Despite facing challenges such as economic policy uncertainty, the CLO market demonstrates resilience and adaptability, especially in light of the recent COVID-19 pandemic. Improved economic indicators and corporate performance following the pandemic have positively influenced the credit profiles within CLO portfolios, reinforcing investor confidence.

Competitive Landscape and Strategic Developments

The competitive landscape of the CLO market is characterized by leading financial institutions and asset management firms, which contend through a variety of strategies including portfolio management refinement and innovation in deal structuring.

Noteworthy collaborations and strategic initiatives among the CLO market participants are bolstering the market growth trajectory. With new entrants to the CLO management space, the market signals openness to innovation and competition, promising an even more dynamic future for global CLO structures.

This comprehensive analysis of the global CLO market captures the essence of a financial sector poised for expansion, revealing critical insights into sector growth, trends, and the recovering impact from pandemic-associated disruptions. The findings offer invaluable market intelligence for industry stakeholders seeking to understand the evolving landscape of collateralized loan obligations.

Key Topics Covered:

1. Executive Summary

2. Introduction

2.1 Collateralized Loan Obligation (CLO): An Overview

2.2 Collateralized Loan Obligation Segmentation: An Overview

3. Global Market Analysis

3.1 Global CLO Market: An Analysis

3.2 Global CLO Market: Sectors Analysis

4. Regional Market Analysis

4.1 The US CLO Market: An Analysis

4.2 Europe CLO Market: An Analysis

5. Impact of COVID-19

5.1 Impact of COVID-19 on Global CLO Market

5.2 Post COVID-19 Impact on Global CLO Market

6. Market Dynamics

6.1 Growth Drivers

• Growing Leveraged Loan Market
• Growing Private Debt
• Increase in TRACE Trading
• Narrowing Bid/Ask Spread
• High Comparative Risk-adjusted Returns
• Low Default Rates
• Favorable Government Regulations
• Diversification Benefits
• Increasing Risk Appetite and Investor Confidence

6.2 Challenges

• Economic Policy Uncertainty
• Liquidity Risk
• Complexity and Understanding

6.3 Market Trends

• Increasing Exposure to SOFR Loans
• Increasing Adoption of Innovative Technologies
• Rising Demand for ESG-Compliant CLOs
• Globalization of CLO Market
• Innovation in CLO Structure
• Growing Focus on Middle Market

7. Competitive Landscape

7.1 Global CLO Market Players: Competitive Analysis

7.2 Global CLO Market Players by Asset under Management

Companies Profiled:

• Morgan Stanley (Eaton Vance)
• Prudential Financial, Inc.
• BlackRock, Inc.
• Apollo Global Management, Inc.
• Ares Management Corporation
• MassMutual (Barings LLC)
• Conning, Inc. (Octagon Credit Investors, LLC.)
• HPS Investment Partners, LLC
• Brigade Capital Management, LP
• Neuberger Berman
• CIFC Asset Management LLC
• Blackstone Inc.

For more information about this report visit https://www.researchandmarkets.com/r/pc41zo

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