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JPMorgan, BofA, Citi Offer CLOs

New collateralized loan obligation offer follows record rally this year in the debt.

JP Morgan Chase, Bank of America and Citigroup are offering new collateralized loan obligations (CLOs) following a record rally this year in the debt, Bloomberg reports. The highest-rated portions of CLOs have climbed to 89 cents on the dollar from a record low of 69 cents in April, according to Morgan Stanley data.

New CLO sales may help companies refinance $1.5 trillion of high-yield loans and bonds maturing by the end of 2014. Wells Fargo & Company has arranged a $275 million CLO with Guggenheim Partners as lead investor.

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