CLO Market Set for $20 Billion Reset Spree in Sign of Thawing

A type of refinancing transaction is becoming more popular in the $1.3 trillion market for collateralized loan obligations, a sign the industry is healing as concerns over surging inflation and a potential recession abate.

Known as resets, these transactions can extend the life of CLOs for years. In the past they’ve made up as much as a third of annual issuance, according to data compiled by Bloomberg. But last year’s sharp deterioration in credit conditions all but put the deals on ice.

Now, they’re making a comeback. Credit Suisse Asset Management and Oak Hill Advisors have in recent weeks ...