CLO MARKET TRENDS: SEPTEMBER 2023
What does the data say? - September Edition: CLO market trends, volumes, and liquidity. Join us for our next webinar: October 10, 2023 at 4pm EST.REGISTER NOW
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Latest Newsall news
Katayama Credit in US market for debut CLO
Rob Shrekgast in his interview with GlobalCapital highlights the evolving dynamics in the CLO market, with tier one managers achieving mid-160bp spreads on triple-A notes, while debut managers, paying at around 205bp-210bp. Despite the tightening spreads seen in the capital stack throughout the year, Shrekgast cautioned that further tightening might be harder to achieve.
Creaky credit sparks ‘high’ dispersion in CLO pricing
Article by Nathan Tipping on Risk.net discusses the resurgence of dispersion in credit markets following 18 months of central bank rate hikes. This trend is particularly noticeable in collateralized loan obligations (CLOs), where pricing has become fragmented, as evident from data provided by KopenTech. The dispersion is attributed to various factors, including differing manager reputations, changing loan market dynamics, and variations in market value of over-collateralization (MVOC) profiles.
US CLO market in good health despite spluttering primary
Great article by Tom Lemmon in GlobalCapital on how the US CLO market is fundamentally in good health, featuring KopenTech's Rob Shrekgast. According to Rob, despite a slow start in new issuances in the US CLO market during the first half of the year, the market remains healthy. Successful BWIC volumes, an indicator of market health, have remained steady around $2 billion each month, suggesting market participants are calm and sellers are comfortable with market conditions.