CLO market braces for another wave of loan downgrades
A wave of negative rating actions swept the leveraged loan and CLO market in April. “Companies will look to secure incremental capital which will lead to further rating pressure,” says Philip Raciti, portfolio manager and head of US performing credit at Bardin Hill Investment Partners

Seven points basis opens up in CLO triple Bs - but Investcorp trades well to defy trend
Triple B rated tranches once again swamped the secondary CLO market yesterday and trading levels suggest the basis between bonds on negative watch/outlook versus those not subject to a downgrade is about seven points

US and European CLO triple Bs hit secondary market as downgrade fear sets in
Downgrade risk is being priced into triple B-rated CLO tranches, according to market sources, after a wave of mezzanine and junior CLO debt tranches swept onto b-wics yesterday

Global CLO b-wic round-up: spreads tighten across the board as bond-flex CLOs trade well
Price levels have tightened and, more importantly, stabilised across the secondary CLO market over the last two weeks, but the Easter break led to a drop off in CLO b-wic supply

US CLO triple As move to below 200bp - but talf shouldn't get all the credit
US CLO triple As are trading inside 200 basis points for the first time in almost a month – but that is less a reflection of the talf announcement last week than to do with the broader rally across risk assets

Secondary CLO debt trades well but Trace suggests CLO equity trading at 12 cents
A variety of CLO paper was in for the bid yesterday with US secondary CLO volumes reaching $281 million, and European volumes hitting €74 million

Liquidity ends at double Bs as European CLO single Bs struggle in secondary
European CLO single Bs are struggling to clear in the secondary market with sources indicating these positions are valued at about 30 cents

$52 million b-wic suggests stabilising junior CLO spreads
A $52 million b-wic yesterday shed some light on junior CLO levels on a day of very little pricing transparency.

Global CLO b-wic round-up: $8 billion of US CLOs listed in record-breaking March
Last week brought an end to the busiest month in both the US and European CLO secondary markets since at least 2014. $7.7 billion of US CLO paper was on sale in March with a further €1.8 billion of European CLO bonds available, bringing the total listed in Q1 to $13.9 billion and €3.6 billion

Who's got the moves US: Carlyle leads as $3.7 billion of CLO loans recover
CLOs were exposed to $833.4 million worth of paper in the 10 term loans that suffered the largest price falls last week. But CLOs also had exposure to $3.67 billion of loans that recovered the most over the seven days.

Citi makes $100 million-plus gains on CLO triple A trade
Citi bought $2 billion of CLO triple As from PGIM last month and made more than $100 million in profit after selling the bonds when triple A prices recovered, according to Bloomberg

Kayne Anderson CLO trades high as double A investors factor in portfolio health
Demand for high quality mezzanine US CLO paper is picking up, according to trader sources, with the most sought after single As trading at about 425 basis points and the best triple Bs trading at 670bp towards the end of last week

Benchmark European 2020 CLO trades 11 points down in secondary
A senior European CLO investor has flipped €21.9 million worth of notes onto the secondary market, selling eight of nine line items via a b-wic, sources say. Meanwhile, US CLO trading switched from being investment grade focused over the last month to being centred on below IG tranches yesterday: IG volumes reached $574 million versus $926 million for lower rated tranches

US CLO issuers get pricing signals as triple As trade in secondary at 375bp
Would-be US CLO issuers were given an indication of pricing levels yesterday after a CLO that turns static in July hit the secondary market

European CLO triple Bs go from 99 to 73 in less than a month
European CLO mezzanine prices have fallen by almost 30 cents in less than a month, with a b-wic yesterday featuring a 2019 PGIM-managed CLO underlining the dramatic decline

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

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