Market Commentaries



Eur/GBP

USD  

 

Feedback on Commentaries and Analysis is welcome
Sheil Aggarwal


select * from bbg_commentary where 1=1 order by date desc
  • 13 March 2025

    USD CLO Mezz/Equity

    $99m of flow today, spreads have a softer feel and US LSTA 100 Index -10bp dod.  $45m of Single-A flow with a trading range of 209dm-303dm with benchmarks 217dm-223dm (Single-A Index 218dm).

    EUR AAA CLO

    AAA spreads still drifting wider, at around 103 dm today.

    EUR MEZZ/EQUITY CLO

    Single B spreads wider again – at around 874 dm today.


  • 12 March 2025

    EUR AAA CLO

    AAA spreads have softened slightly but are still in a wait and see mode.

    EUR MEZZ/EQUITY CLO

    BECLO 2X BRR (AA) traded at 172 dm.

    Single A’s continue wider. Today they trade around 246 dm.

    BBB’s traded around 337 dm in secondary.

    CRNCL 2018-10X M2 traded at 46.26 which shows equity has also widened and this cover is a discount to NAV.


  • 11 March 2025

    EUR AAA CLO

    AAA spreads are steady. Premium bonds are around 170 dm while discount bonds are more like H90’s.

    EUR MEZZ/EQUITY CLO

    AA’s look a little wider to us – across the board with the average spread being 165 dm.

    Single A’s also look a few bps wider, at around 231 dm.

    PRVD 1X D (BBB) traded at 242 dm.

    BB’s look to have taken a leg down. We’re seeing traded spreads around 25-30 bps wider. With the re-evaluation of risk across global markets recently it looks as if lower mezz CLOs are not immune to this.

    Similarly single B’s are wider also.


  • 10 March 2025

    USD CLO Mezz/Equity

    $60m of flow today, US LSTA 100 Index -4bp dod and CLO spreads generally flat with a softer feel.  Bonds that traded today are for the vast majority post reinvestment profiles with no material changes to the Index.


  • 7 March 2025

    USD CLO Mezz/Equity

    $131m of trading today in single-As (7 trades) with little change in benchmark spreads (single-A Index 213dm).  US LSTA 100 Index -1bp dod.


  • 6 March 2025

    USD CLO Mezz/Equity

    $243m of flow today, with some rebalancing on some mezz spreads, US LSTA 100 Index +3bp dod.  Most of the flow is in BBB with a trading range 281dm-584dm with one benchmark NEUB 2022-47A D covers 100.09 at 313dm / 6.2y WAL - Neuberger managed, MVOC 110.8, coupon +310bps and ADR low 0.2 (BBB Index 324dm).

     

    EUR MEZZ/EQUITY CLO

    Just a few BB trades today. All of them traded above par, at an average spread of 605 dm.

    CGMSE 2020-2X SUB traded at 14.5% yield.


  • 5 March 2025

    USD CLO AAA

    $250m of flow today across the stack, slight softening at AAA else spreads unchanged, US LSTA 100 Index +5bp dod.  AAA trade 89dm-176dm with benchmarks 133dm-136dm (AAA Index 128dm).

    USD CLO Mezz/Equity

    $14m of AA and $14m of BB bonds trade with few benchmarks, at the BB end the trading range is 619dm-968dm with one benchmark AIMCO 2021-15A E cover 100.34 at 619dm / 6.5y WAL - MVOC 106.2, coupon +595bps, ADR 0.6 and clean metrics (BB Index 618dm).

    EUR MEZZ/EQUITY CLO

    PLMER 2021-2A B2 (AA) paying 1.97% coupon traded at 94.04.

    Single A’s traded around 218 dm.

    BBBs are steady at around 293 dm. Today’s trades are mostly short bonds past their RPE.

    CGMSE 2017-3X D (BB) traded at 511 dm.


  • 3 March 2025

    USD CLO Mezz/Equity

    $24m of mezz trade today in small sizes AA-BB, US LSTA 100 Index +4bp dod.  Large majority of trades are non benchmarks, post reinvestment bonds / weaker manager profiles with no changes in the index levels today.


  • 28 February 2025

    USD CLO Mezz/Equity

    Little flow today given the various industry conferences and month end, $5.5m of flow and US LSTA 100 Index -7bp dod.  1 x benchmark single-A trades in a small 2m clip ANCHC 2021-21A CR covers 100.13 at 192dm / 5.2y WAL - strong MV metrics with MVOC 118, coupon +190bps and trades inside the index 214dm.


  • 27 February 2025

    USD CLO AAA

    $66m of flow today across the stack, spreads broadly unchanged, US LSTA 100 Index +1bp dod.  AAA trades all non benchmark BSLs, with 2 x MM tranches trading 174dm-185dm context.

    USD CLO Mezz/Equity

    Most of the flow in BB/BBB with few benchmarks trading and spreads unchanged.

    EUR AAA CLO

    The only AAA trade, SHCLO 2X A, is at 154 dm with 170 bps stated margin.

    EUR MEZZ/EQUITY CLO

    JUBIL 2024-28X B1 (AA) traded at 195 dm.

    A whole bunch of single A’s traded, at an average spread of 229 dm. This is unchanged on recent sessions.

    BBBs traded around 334 dm, BBs are a little tighter at 550 dm, single B’s also have tightened by 10-20 bps to around 807 dm.

    ACLO 5X SUB traded at 60.82 / 9.6% yield.


  • 26 February 2025

    USD CLO Mezz/Equity

    Only 2 trades today, non-benchmark BB that trade wide to the index (615dm) in a 714dm-794dm range (high coupon / low MVOC profiles).  US LSTA 100 Index continues to trend higher now +21bp on month end.

    EUR AAA CLO

    The only AAA trade, ARBR 8X AR, is at 96 dm.

    EUR MEZZ/EQUITY CLO

    Single A’s around 227 dm today.

    BBBs, all above par, at around 333 dm.

    BBs trade around 629 dm. Arini V at 470 and Bain Euro 2025-1 at 500. Secondary is wider than new issue because of performance issues and higher margins.

    Single B’s are at 637 dm in secondary. Arini V priced at 800.

    ALBAC 5X SUB traded at 80.86 / 15.25% which considering it only closed 5 months ago is lower than we expected.


  • 20 February 2025

    EUR MEZZ/EQUITY CLO

    AAs continue to rally in line with the New Issue market. Today’s short, amortising trades are around 112 dm.

    Clean BBBs are in H200s. Distressed bonds 100 bps or more wider.

    BBs haven’t moved in the last couple of trading sessions and are around 547 dm today.

    There are four equity trades. Yields are mostly around 12 – 13% except for INVSC 7X SUB at 16% because of high ADR, current defaults and CCC bucket.


  • 19 February 2025

    EUR AAA CLO

    AAAs averaged 103 dm in secondary. ARESE 14A AR and AVOST 1A AR, both short and with low MVOCs traded above par at around 90 dm.

    EUR MEZZ/EQUITY CLO

    MECLO 2023-1X B2, a fixed AA with 6.7% coupon traded at 101.02.

    FICLO 2022-1X DR (BBB) traded at 376 dm.

    BBs traded around 650 dm. PENTA 2023-15X E has a high margin but traded close to par reflecting its callability in around 3 months.
    Single B’s traded around 819 dm.

    There are two equity trades. ARMDA 6A SUB traded at 10% yield. OCPE 2023-8A SUB has a large positive value to equity through a refi opportunity as the AAA is paying 174 bps margin.


  • 18 February 2025

    EUR AAA CLO

    Secondary BWIC trading resumed today. AAAs have traded at 90 dm.

    EUR MEZZ/EQUITY CLO

    AAs trading around 118 dm for short average lives.

    Premium price BBBs have traded around 371 dm but GLNBR 1X D with its very high margin of 575 bps is at 566 dm.

    BBs have traded around 665 dm.

    Single B’s are around 882 dm.

    BCCE 2021-2X M1 traded at 18.5% yield. It has a high CCC bucket and high historic default rates.


  • 13 February 2025

    USD CLO AAA

    $74m of flow today, US LSTA 100 Index +5bp dod and high grade mezz tightens slightly.  AAA bonds are in high coupon profiles (148dm-160dm) and trade wide (142dm-155dm) to the AAA Index 126dm.

    USD CLO Mezz/Equity

    Flow in mezz is predominantly BB and BBB bonds, BBB trade 309dm-566dm with 1 x benchmark in a small 130k clip trading 309dm (BBB Index 319dm).  BB trade 487dm-832dm with benchmarks 611dm-631dm (BB Index unchanged 615dm).

    EUR AAA CLO

    AAAs traded around 96 dm.

    EUR MEZZ/EQUITY CLO

    AAs trading around 168 dm for short average lives. Canyon Euro 2025-1 printed at 180.

    ARINI 1X D (BBB) with a high margin of 604 bps trades at 566 dm. It becomes callable in a few months.

    GROSV 2024-2X F (B) trades at 838 dm.

    PRVD 2X SUB trades at 10% yield.


  • 12 February 2025

    USD CLO AAA

    $192m of flow across the stack today, US LSTA 100 Index -2bp dod and CLO spreads flat.  AAA trade 118dm-129dm with benchmarks 121dm-129dm (AAA Index 126dm).

    USD CLO Mezz/Equity

    Mostly non benchmark A, BB and B today with the majority of flow in BB with a trading dispersion of 573dm-805dm with a combination of post-reinvestment and low MVOC reinvesting profiles trading with little impact on the Index (615dm).

    EUR AAA CLO

    AAAs continue to tighten. The average spread today is 111 dm.

    EUR MEZZ/EQUITY CLO

    PLMER 2021-1X B (AA) traded at 134 dm.

    Spreads for premium price BBBs haven’t moved – at around 397 dm today.

    A number of BBs have traded. Most of these have low credit enhancement but they’ve still traded well at around 514 dm.

    There are two single B trades with very different outcomes. CRNCL 2018-9X F has a slightly low MVOC and traded at 648 dm. NWDSE 2021-24X F is more distressed and traded at 1045 dm.

    There are a raft of EUR equity trades today. Yields vary considerably in a range from 9% to 20% depending on deal/manager performance.


  • 11 February 2025

    EUR AAA CLO

    ACLO 11X A traded at 164 dm due to its high margin.

    EUR MEZZ/EQUITY CLO

    ACLO 11X C traded at 292 dm.

    BBBs are range bound at around 324 dm in secondary.

    BBs trading up at around 526 dm.

    ANCHE 4X F traded strongly at 725 dm.

    There are three EUR equity trades, all in the 11% - 12% yield area.


  • 10 February 2025

    USD CLO AAA

    Only $10m of flow, small tickets.  US LSTA 100 Index +4bp dod.  AAA Index unchanged 126dm, 3 x MM CLO AAA trade 173dm-184dm.

    USD CLO Mezz/Equity

    Little meaningful flow with 1 x MM Single-A  (229dm) and 2 x post reinvestment BBs trade 638dm-684dm (BB Index 615dm).  No change in index levels.


  • 7 February 2025

    USD CLO Mezz/Equity

    Only $34m of single-A flow today, US LSTA 100 Index -1bp dod.  Single-As are all high coupon profiles and trade 298dm-325dm wide of the Single-A Index 217dm

    EUR AAA CLO

    AAAs still look on a tightening trend with today’s secondary trades averaging around 99 dm.

    EUR MEZZ/EQUITY CLO

    Just the one BB trade. INVSC 1X E traded at 522 dm in spite of its low MVOC.


  • 6 February 2025

    USD CLO AAA

    $430m of flow including some significant sized tickets in post reinvestment AAA bonds, US LSTA 100 Index unchanged dod.  AAA bonds are all post reinvestment with AAA Index unchanged at 126dm.

    USD CLO Mezz/Equity

    Little to be drawn from some sporadic mezz trades, all non-benchmark (post-reinvestment / weaker manager / credit profiles) so no no change in Index levels.

    EUR AAA CLO

    AQUE 2019-3X AR (AAA) traded at 88 dm.

    EUR MEZZ/EQUITY CLO

    CORDA 4X BR1 (AA) traded at 133 dm due to its low margin and that it is coming out of its RP.

    HAYEM 11X DR (BBB) traded at 346 dm.

    A lot of BBs traded. They are all high margin bonds and very callable and traded on average around 588 dm.

    Single B’s traded around 860 dm. In spite of being a low margin bond BCCE 2017-1X F traded widest at 894 dm because of its poor credit performance.

    ARBR 10X SUB traded at 11.4% yield


  • 5 February 2025

    USD CLO AAA
    $164m of flow, US LSTA 100 Index -4bp dod.  AAA trade 121dm-159dm with benchmarks 121dm-126dm (AAA Index 126dm).

    USD CLO Mezz/Equity

    Majority of the flow in BB with a trading range of 481dm-878dm with benchmarks 609dm-612dm (BB Index 615dm) - APID 2016-25A E2R3 (CVC) covers 101.36 at 612dm / 7.8y WAL.

    EUR AAA CLO

    Short AAAs trading well at around 90 dm.

    EUR MEZZ/EQUITY CLO

    AA fixed odd lots traded around 94 to 95 price.

    Premium BBs are steady at around 563 dm.

    BLACK 2017-2X F (B), performing well traded at 679 dm. BCCE 2018-2X F (B) with low credit enhancement traded at 813 dm. Both deals have started paying down.

    There are three equity trades. AVOCA 11X SUB is the cleanest and traded at 8.5% yield. OZLME 1X SUB has a high CCC bucket and an ADR of 0.86% but still trades at 9.1%. BABSE 2021-2X SUB has a high CCC bucket, and ADR of 1.3% and 1.2% currently defaulted and trades at 21.5%.