Who invests in securitisations of leveraged loans?

The purpose of Bank Overground is to share our internal analysis. Each bite-sized post summarises a piece of analysis that supported a policy or operational decision.
Published on 29 January 2019
Our analysis suggests UK banks have small exposures to securitisations of leveraged loans via collateralised loan obligations (CLOs). But global banks, particularly US and Japanese, have more significant exposures to CLOs.

Chart A

Indicative estimated holdings of CLOs by global investors(a)

Each square represents 1% of the Collateralised Loan Obligation (CLO) market, 2017 Global market: $750 billion

Who invests in securitisations of leveraged loans? - Chart A

Footnotes

(a) BarclayHedge, Bloomberg Finance L.P., FCA Alternative Investment Fund Managers Directive (AIFMD), Firm public disclosures, LCD, an offering of S&P Global Market Intelligence, Morningstar, National Association of Insurance Commissioners, Securities Industry and Financial Markets Association, Solvency II submissions and Bank calculations.

See full footnotes in the Financial Stability Report, November 2018 Opens in a new window.

This page was last updated 31 January 2023