SCIWire

US CLOs slow

Thursday 29 June 2017 14:32 London/ 09.32 New York/ 22.32 Tokyo

Activity in the US CLO secondary market is slow as the seasonal lull looks to have started early.

"It's a summer market already and there's overall not much action in secondary while primary continues to roll on with refis and re-sets," says one trader. "There's not much connection from investors for the most part - they're only active here and there, with most focus around lower mezz and equity."

The trader continues: "We have seen some softness in lower mezz, particularly around single-Bs, with some of the hedge funds normally active there stepping out. However, that is expected to be short-lived."

In equity there is a more positive tone. "Dealers are adding equity positions to their offerings and at the same time we're seeing investors heading towards longer-dated pieces," the trader reports.

There are six BWICs on the US CLO calendar for today so far. Again, the main supply comes from double- and single-Bs, but the most sizeable list comprises three triple-As.

Due at 10:00 New York time it involves $25m each of ATRM 9A AR, BSP 2014-VA AR and OZLM 2014-9A A1R. None of the bonds has covered on PriceABS before.

29/06/2017 14:32:44