For once the CLO market seems to be benefiting from regulatory tailwinds, with Solvency II in Europe and revised NAIC guidelines in the US encouraging insurance companies to invest in the asset class globally.
2026 so far has been a busy year for lawyers on both sides of the Atlantic, with 1,061 CLO transactions priced across all markets by the end of Q3, only slightly behind the 1,101 seen last year in the same time period, with 2025 going on to become a record-breaking year.
It remains to be seen whether the rest of the year will provide enough opportunity for 2026 to break 2025’s record, and whether recent volatility threatens contagion for CLO liabilities, or whether it finally offers an opportunity for CLO managers to ramp up with cheaper assets and sort out the arb.
Two firms have taken clear advantage of the large deal flow we’ve seen so far this year, as the league tables are mirroring each other with Milbank leading the way as manager counsel (US and Europe), and Paul Hastings pulling off a similar double in the arranger counsel rankings.
Elsewhere there are a couple of novel twists as far as European CLO documentation goes,...
