SCIWire

US CLOs on the up

Thursday 12 January 2017 14:34 London/ 09.34 New York/ 22.34 Tokyo

Activity and prices are on the up in the US CLO secondary market this week.

"There's very a positive tone and everyone is bidding up paper," says one trader. "That's particularly the case in double-Bs, but there is strength across the capital structure."

The trader continues: "People are looking to test the strength of the bid, which appears to be a deep one. As a result, there have been a lot of BWICs announced in the last 24 hours or so, but they're trading very well."

Consequently, the trader adds: "Secondary prints are well inside where primary left off at the end of last year. So when new issuance comes back the expectation is that it will be much tighter than previously too."

There are nine BWICs on the US CLO calendar for today so far. The largest is a ten line $36.145m double-B list due at 10:30 New York time. It comprises: AVERY 2013-2A E, AVERY 2014-5A E, AVOCE 2014-1A D, BABSN 2014-IIA E, BALLY 2014-1A D, BSP 2014-VA E, HLA 2014-3A E1, HLA 2014-3A E2, OCT17 2013-1A E and STCR 2015-1X E.

Only BALLY 2014-1A D has covered on PriceABS in the past three months - at 87H on 9 December.

12/01/2017 14:34:30