As compliance with the Volcker rule continues to transition into full applicability this year, growth in total collateralized loan obligation holdings at U.S. bank holding companies tapered off between 2015 and 2016. But market participants made it clear that the Volcker rule isn’t to blame for the lower CLO growth.
Between 2015 and 2016, total CLO holdings grew by $4.6 billion. But as a percentage of total securities, CLO holdings plateaued. In 2015, CLOs represented 2.99% of total securities. In 2016, that number ticked up only slightly to 3.01%.
