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Citigroup was the top arranger in 2018 of new US Collateralized Loan Obligations (CLOs), as well as the top arranger of reworked deals, in a record year for issuance.

The bank, which had a 14% market share, has held the top spot on the new-issue US CLO arranger league table every year since at least 2012 when LPC first began publishing the ranking.

More than US$128bn of US CLOs was arranged in 2018, breaking the previous record of US$123.6bn set in 2014, according to LPC Collateral data. The market is expected to be robust in 2019 with at least one bank expecting another record year, calling for US$135bn of volume despite market volatility and regulatory criticism of the underlying assets.

Morgan Stanley was the second most active new-issue arranger with 13% market share, the same position it held last year, and JP Morgan was third with 11%, moving up from the fifth spot in 2017, according to the data.

The league table ranks arrangers by volume and does not include CLO refinancings or resets.

“We have been given the support of management to grow and expand [the CLO] platform, not just in league tables, but in the number of clients that we work with and in our overall standing in the market,” said Sean Griffin, co-head of JP Morgan’s CLO primary business.

“Between our structuring and distribution and the breadth we have with our leveraged finance franchise, we are very well positioned to continue [in 2019] to execute deals and best service our clients,” said Christine Ferris, co-head of JP Morgan's CLO primary business.

Citigroup was also the largest arranger for the combined reset/reissue league table as well as the refinancing league table, according to the data.

Goldman Sachs was the second most active arranger of CLO resets and reissues followed by JP Morgan. Credit Suisse was the second most active for refinancings followed by Goldman Sachs.

Spokespeople for the banks either declined to comment or did not respond to e-mails seeking comment.

While the market faces a number of questions in 2019, including widening tranche spreads, bank analysts are optimistic.

Wells Fargo and Deutsche Bank predict US$110bn of US CLO volume in 2019, while Barclays forecast US$100bn-US$110bn of new US broadly-syndicated CLOs and US$15bn-US$20bn of middle-market CLOs this year. JP Morgan expects US$135bn of issuance and Morgan Stanley said it predicts US$90bn.

((kristen.haunss@thomsonreuters.com; (646) 223-6790; Reuters Messaging: kristen.haunss.thomsonreuters.com@reuters.net; Twitter @TRLPC @KristenHaunss))