(Bloomberg) -- Sales of U.S. collateralized loan obligations reached a fresh annual record on Friday, topping $130.7 billion, as investors clamor to buy securities that offer relatively high ratings and protection against inflation. 

New issuance topped 2018’s record of $130.4 billion, and may not slow down in the coming months. Some banks are projecting that new-issue CLO sales can go as high as $160 billion, and there are some 200 short-term credit lines funding upcoming transactions. 

CLOs, the biggest buyers of leveraged loans, are benefiting from a strong supply of buyout debt. And the potential profit for putting together CLOs, measured by the gap between what a money manager can earn from buying loans and what it pays to finance its purchase of that debt, is still relatively high. That steep difference, known as the arbitrage, makes it easier for firms to sell the riskiest parts of CLOs, known as equity. 

“We are in a golden period for CLO equity, and demand for paper remains strong,” said Thomas Majewski, managing partner at Eagle Point Credit Management, which buys CLO equity.  

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