SCIWire

US CLOs resume

Thursday 16 March 2017 14:39 London/ 09.39 New York/ 22.39 Tokyo

Something approaching a normal service is resuming today in the US CLO secondary market after a snowstorm impacted start to the week.

BWIC volumes have been slow to pick up this week, with the bulk of lists revolving around triple- and double-As. Today sees a return towards normality with five fairly sizeable auctions and focus firmly back on mezz.

Despite the stop-start nature of trading in recent sessions and the concerns noted last week from some participants about the further extent of the rally, strong overall tone and technicals are still supporting pricing levels. As a result, secondary spreads across the capital structure beyond equity continue to edge tighter.

The largest BWIC on the US CLO calendar for today so far is a 12 line $64.103m mix of mezz and equity. Due at 11:00 New York time, it comprises: CATLK 2015-2A D, CECLO 2013-19A C, CGMS 2014-3A D1, CGMS 2014-3A SUB, CGMS 2014-3X SUB, CGMS 2015-3A D, KKR 12 E, KVK 2014-2A SUB, SHSQR 2013-1A SUB, VENTR 2017-26A E, VOYA 2015-2A E and WAMI 2014-1A D.

Only CGMS 2014-3A SUB has covered with a price on PriceABS in the past three months - at M70S on 19 January.

16/03/2017 14:39:47