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US CLO rally rolls on

Category: CLOs Secondary markets

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Current focus on mezz looks set to move down the stack

Strong demand continues to drive secondary spreads tighter across the US CLO capital stack. But – similar to triple-As before them – as mezz tranche prices near par, trading is becoming stickier and the focus is likely to shift down to equity.   

“Demand for floating rate assets has continued this year so far, with distressed loans and CLOs heading back to par,” confirms one trader.

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