Issuance of collaterized loan obligations, or CLOs, a complex structured product that helped fuel the leveraged buyout boom, is likely to remain muted in the near term, Barclays Capital analysts said Friday in a report.

CLOs pool high-risk loans sold by junk-rated companies and cut them into various tranches of risk and return. They contained nearly two-thirds of the debt that financed leveraged buyouts in the first half of 2007. Their share had shrunk to about 20% by the middle of last year.

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