Collateralized loan obligations have boosted their purchase of new U.S. leveraged loans sold to non-bank lenders from 42.3% in the first three quarters of 2010 to 50.1% in the last quarter of the years, according to JPMorgan Chase. JPMorgan analysts explained that new CLOs “offer exposure to leveraged loans, one of the most appealing investment options in 2011, with yields on fixed-rate bonds at or near historic lows and interest rate volatility already increasing.”
