KopenTech CLO Weekly: BWIC Activity & Market Trends, May 18 – May 22, 2026
May 26, 2026
Secondary activity compressed into four sessions ahead of the long weekend, with Friday effectively shuttered — just $8.8mm posted and nothing clearing. Within those four days, conviction improved sharply versus the prior week. Total traded volume climbed to $797mm on $1.08bn posted, the overall conversion rate surging from 45% to 74% while the line-count DNT rate fell from 52% to 35%. Monday's session was tight but efficient at 89% conversion on modest volume; Tuesday carried the week with $344mm traded before flow tapered steadily through Thursday's 70% conversion into the holiday close.
AAA led by volume at $322mm, tightening 16 bps to 107 DM on average, though a 45% line-count DNT pointed to continued manager and vintage selectivity. AA cleared cleanly — all $23mm placed at 0% DNT, marginally wider at 157 DM on thin supply. IG mezzanine carried the week's cautionary signal: A-rated paper was absent entirely, and BBB struggled with a 47% DNT rate and clearing levels 66 bps wider at 432 DM — the largest spread move in the stack. BBs outperformed, tightening roughly 30 bps to a 633 DM average with top-tier names clearing firmly in the mid-400s. Equity drove $341mm of flow at 79% conversion, the strongest clearing rate among rated categories.
US BSL CLO DMs WoW, bps
