SCIWire

US CLOs unswerving

Thursday 7 September 2017 14:01 London/ 09.01 New York/ 22.01 Tokyo

The US CLO secondary market is yet to swerve from the path it has been following for a large part of this year.

Light volumes continued in August, but the year's supply-demand dynamic remained. Appetite for a still limited amount of available paper ensures that secondary spreads remain firm - 1.0 spreads throughout the stack are unchanged over the past month, while those for post-crisis bonds below double-A have edged in.

September so far has seen activity pick up slightly, but overall this week's BWIC calendar has looked little different to the pre-summer months with something less than 'normal' volumes in for the bid. However, the market could yet see an upswing once this holiday shortened week is over.

For now, there are four BWICs on today's US CLO schedule. The chunkiest of which is a $38+m five-line collection of double-As.

Due at 10:00 New York time the list comprises: ACIS 2013-1A B, BABSN 2013-IA B, NMRK 2013-1A B, OCT16 2013-1A B1 and TELOS 2013-4A B. None of the bonds has covered on PriceABS in the past three months.

07/09/2017 14:01:02