Fitch Ratings predicts that as many as 20% of specialist-investment managers in the leveraged-loan market in Europe will cease to exist in a few years. An influx of managers of collateralised-loan obligations made the boom of the leveraged-loan market possible, but a slowdown in the market is expected to hit newer, smaller managers. "Fitch estimates that around 20% of European CLO managers may exit the market in the next three years," according to the report. "The main reasons for this are poor profitability of the CLO platform relative to the manager's commitment to the business, poor growth prospects or companywide financial stress."

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