US collateralised loan obligation (CLO) issuance remained strong in the opening months of 2026, though activity has begun to face headwinds from widening spreads and market volatility, according to a market review by the Maples Group.
The report, in Maples Group’s CLOser publication, shows issuance totalling about $73.3 billion across roughly 163 transactions in January and February, following two consecutive record years above $200 billion. While activity remains historically robust, new issuance is down about 4% to 5% compared with the same period in 2025.
The data indicates a shift in market momentum. January saw about $30 billion in deals, while February accelerated to more than $43 billion. However, concerns tied to global uncertainty and sector-specific risks, including those affecting software and artificial intelligence, began to slow deal progress late in February and into March 2026.
Refinancing and reset activity has declined more sharply. Year-to-date volumes are down roughly 45% compared with 2025, as widening spreads reduce incentives for managers to restructure existing deals. Average weekly refinancing and reset volumes fell from $5.1 billion in February to $2.4 billion in early March, the report said.
Average deal sizes have also trended lower, dropping to about $477 million in February and $456 million in March, roughly 10% below levels seen in late 2025. At the same time, the time required to close transactions has become more volatile, with fewer rapid “print-and-sprint” deals observed.
The Maples Group reported strong internal activity despite broader market shifts, including increased warehouse formation and a rise in open facilities. Warehouse activity in January and February was up 20% year over year, though the pace slowed into March as market sentiment softened.
Across the market, approximately 300 warehouse facilities remain open in the US, reflecting continued demand for leveraged loans. However, fewer warehouses are converting into CLOs in 2026, about 6%, as holding periods lengthen to an average of 7.5 to 8 months.
Looking ahead, the report describes a market entering the second quarter with “cautious optimism.” While investor demand and relatively low default expectations continue to support issuance, risks tied to interest rates, credit quality and geopolitical conditions could weigh on activity.
Even so, the report notes that CLOs remain supported by their floating-rate structure and active management, factors expected to sustain investor interest despite potential declines from 2025’s record issuance levels.
