US CLO double Bs struggle as 2020 deal drops 40 cents in three months
A gap is emerging between single A US CLO tranches and junior CLO debt after $33 million of single As changed hands yesterday via a b-wic with prices between 82 and 87 cents. But a 2020 CLO shows how fast and sharp the decline has been for junior CLO paper

Global CLO b-wic round-up: CLO triple As recover but mezz left behind
The CLO secondary market was a tale of two halves last week. 100% of all bonds listed in b-wics on Monday and Tuesday had no covers released (either traded or did not trade), but the end of the week was a different story for both markets

European CLO triple As bounce back in secondary market
European CLO triple As have begun tightening in the secondary market with sources indicating that by Friday, these notes were trading at 250 basis points, which is down from about 400bp a week ago

US CLO triple As stage recovery as high quality paper trades near par
US CLOs are recovering with some first-pay tranches being bid near at and around par, according to data from Trace

US fund managers put on leveraged CLO triple A trade with a view to 13% returns
Hedge fund managers are looking to buy US CLO triple A tranches with leverage as valuations for these positions dip into the 80s

Bank looks to unwind $632 million loan TRS
A US bank has looked to liquidate a total return swap vehicle by putting out a loan bwic, according to market sources, with the vehicle sized at $632 million

Fed unveils IG bond buying programme and direct lending plans
The US Federal Reserve has unveiled further measures to support the US economy alongside plans to establish a direct lending initiative - Main Street Business Lending Programme – to support lending to small-and-medium sized businesses

CLO liquidity drops again as below IG tranches hit the market
US CLO liquidity has been weak of late, but it took another step lower yesterday, according to market sources

Fed accepts triple A-rated CLOs in new 'primary dealer credit facility'
The US Federal Reserve Board will establish a primary dealer credit facility on Friday (20 March) to help defend against the impact of coronavirus-led market volatility

Global CLO b-wic round-up: triple A volumes hit nine-year highs, but equity valuations could be "single digits"
Over $2.5 billion of US CLO paper listed in b-wics in last week's manic trading, with a further €435 million of European CLO bonds also on sale. CLO buyers and sellers turned to the safest part of the capital structure – the triple A rated notes – and away from its most illiquid asset class, with no equity bonds listed in either market

Secondary CLO triple As slump below October levels
The secondary CLO market is showing no sign of stopping the rut with triple A rated paper in European and US markets displaying more weakness

Loan market slump feeds into CLO pricing
The loan market opened this week 2-4 percentage points lower than last week, pushing it toward 90—a threshold it has not crossed since February 2016. CLOs have reacted to this rapid drop

Global CLO b-wic round-up: sellers flock to secondary market as trade rate hits 71%
The broader market sell-off reached CLOs last week, with investors lining up to list their positions in the CLO secondary market

Secondary CLO volumes jump as investors shed triple Bs into volatility
CLO investors are putting together the pieces after a volatile week, in which investmemt grade-rated tranches have changed hands but with limited visibility on pricing

US CLOs trade early as secondary market focus switches to IG tranches
Just over half of the bonds listed on a US CLO b-wic have traded early, defying the prevailing trend of limited liquidity in the secondary CLO market

Tranche traders aim to navigate default risk while staying clear of coronavirus contagion
The CDS market is navigating between two sources of risk for equity and mezzanine high yield index tranches. The default of US media company McClatchy has focused idiosyncratic concerns, while the spread of the coronavirus has stoked fears of a systemic sell-off.

CLO refinancing auction draws plaudits despite failure to clear
A novel approach to refinancing a CLO failed to clear, despite optimism behind the concept.

IHS Markit mulls CDX EM growth and iTraxx ESG screen
Increasing the portfolio size of CDX EM and consulting on an ethically-screened version of iTraxx Europe are among the projects index administrator IHS Markit has been working on ahead of the 20 March roll.

Covid-19 outbreak rattles carry traders
The coronavirus panic hitting financials markets at the end of February has been a strong driver of relative value trades, with CDS underperforming both cash bonds and equity, while financial names felt the heat more than corporate borrowers as geographical risk came into play.

CLO managers don’t always prioritise profits

Wide double Bs leave CLO refis trapped in catch 22
$12.5 billion of US CLOs have refinanced this year on the back of steep CLO term curves — but wide junior CLO spreads have made some equity investors and managers think twice about repricing.

MUFG and CSAM adopt novel auction concept for upcoming CLO refi
Credit Suisse Asset Management and Mitsubishi UFJ Financial Group are taking a fresh approach to US CLO refinancings with sources indicating that the pair are joining forces to conduct a refi via an auction

Global CLO b-wic round-up: that's another fine mezz you've gotten me into
European CLO investors are tripping over themselves to buy mezzanine paper in the secondary CLO market

US pension earmarks $25 million for secondary direct lending investment
Maine Public Employees Retirement System (MainePERS) is set to invest $25 million to a private credit fund through a secondary market transaction  

Correlation rise stokes mezz rally but adds to CSO woes
Below the calm surface of the credit market, correlation has been churning and creating dislocations rich with reward for index tranche traders but complicating bespoke issuance, say sources.