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
  • 4 February 2025

    EUR AAA CLO

    AAAs look like they have tightened a few bps. Floaters trading around 101 dm in secondary.

    EUR MEZZ/EQUITY CLO

    With the tightening in spreads we have seen in the last month a lot of bonds are trading at premiums now. All secondary BWIC trades from single A to single B traded with a small premium.


  • 3 February 2025

    USD CLO Mezz/Equity

    $42m of flow, CLO spreads flat dod, US LSTA 100 Index +2bp dod.  Few benchmark trades to note with a flutter of MM CLO BBB and A trading in early-mid 400s dm and mid 200s dm context respectively.  BB BSLs trade 632dm - 751dm wide of the BB Index 620dm for the large part given weaker MVOC profiles (<105 benchmark).


  • 31 January 2025

    USD CLO Mezz/Equity

    Only $11.5m of flow today given month end, US LSTA 100 Index flat dod.  1 x BBB CIFC 2024-5A D1 covers 102.4 at 255dm / 9.11y WAL - trades inside BBB Index (321dm) given strong MVOC profile 113.2 and low coupon scaling +285bps from a benchmark manager CIFC.  2 x equity trade in early-20s% yield context - OAKCL 2019-4A SUB and PPMC 2021-5A SUB with weaker credit / manager profiles scaling the yield wider to benchmark yields.


  • 30 January 2025

    USD CLO AAA

    $298m of flow today across the stack, US LSTA 100 Index +2bp dod.  AAAs slightly tighter and trade 121dm-130dm with benchmarks 121dm-125dm (AAA Index 126dm).

    USD CLO Mezz/Equity

    4 x BBB trade 250dm-280dm inside the index (321dm) with all profiles low coupon / high MVOC non-benchmarks, 2 x BB trade 722dm-758dm wide of the BB Index (620dm) with profiles low MVOC / weaker manager.  Little change in mezz spread direction.


  • 28 January 2025

    USD CLO AAA

    $78m of flow, US LSTA 100 Index -3bp on Friday close, little change in spreads.  AAA Index 128dm.

    USD CLO Mezz/Equity

    BB and B trades, both non-benchmark (hi-coupon/low MVOC profiles) so little impact on benchmark spreads.

    EUR AAA CLO

    AAAs trading around 98 dm but NWDSE 2021-23X A is a little wider at 106 dm due to its low MVOC.

    EUR MEZZ/EQUITY CLO

    AAs unchanged at 196 dm.

    Single A’s at 226 dm.

    BBBs averaged around 353 dm in secondary. HAYEM 3X DR traded at 351 dm in spite of its low MVOC of 111.90%.

    BBs trade around 613 dm.

    NEUBE 2021-2X SUB trades at 11.70% yield which is 14 pts above its NAV.


  • 24 January 2025

    USD CLO AAA

    Only $27m of flow today, spreads unchanged, US LSTA 100 Index +3bp dod.  1 x AAA trade today ELM36 2024-12RA AR cover 100.87 at 123dm / 6.4y WAL - MVOC 156, coupon +134bps, 0.4 ADR and Elmwood managed benchmark (AAA Index 128dm).

    USD CLO Mezz/Equity

    Little benchmark flow to note, with 1 x BB and 1 x B trades both wide of index levels given MVOC metrics.

    EUR MEZZ/EQUITY CLO

    Just a small handful of BB trades today, at an average spread of 534 dm.


  • 23 January 2025

    USD CLO Mezz/Equity

    $109m of flow today with most of the mezz flow in BB bonds, US LSTA 100 Index +5bp dod.  BB trade 519dm-883dm with few benchmarks trading (BB Index 620dm).

    EUR AAA CLO

    SHCLO 2X A traded up at 100.96 / 149 dm with a fairly high stated margin of 170 bps.

    EUR MEZZ/EQUITY CLO

    BBB trades are mostly high margin bonds with a high likelihood of call trading around 388 dm.

    BBs traded around 569 dm. CIC’s debut issue Victory Street I traded around 20 bps wider than PRVD 8X ER which has very similar characteristics.

    Short single B’s have traded around 650 dm. Longer bonds are in a 900 dm context.

    DRYD 2021-103X SUB traded at a risk adjusted 12 % yield.


  • 22 January 2025

    USD CLO AAA

    $270m of flow today, US LSTA 100 Index +14bp on last CLO trading day, AAA unchanged and trade 127dm-130dm (AAA Index 128dm)

    USD CLO Mezz/Equity

    AA, A and BB benchmarks trade with sideways movement in spreads, BB trade 626dm-631dm with BB Index 626dm, whilst only 1 benchmark A and AA exchange hands with indexes unchanged (188dm / 225dm respectively).

    EUR AAA CLO

    AAAs have another firm day with secondary levels around 97 dm.

    EUR MEZZ/EQUITY CLO

    AA’s are steady at 159 dm.

    Single A’s look like they have rallied a few basis points – at around 207 dm in secondary.

    BBBs have rallied significantly. We see higher margin bonds trading around 20 bps tighter.

    Two BBs with high margins and RPE dates in 2028 have traded pricing in a high likelihood of call with spreads around +701.


  • 21 January 2025

    EUR MEZZ/EQUITY CLO

    Most of the BBs that traded have low MVOCs but nevertheless they achieved good levels of 650 dm.

    Single B’s are at around 831 dm.


  • 17 January 2025

    USD CLO Mezz/Equity

    $58m of flow today in mezz bonds AA-BB with few benchmarks, little movement in spread direction.  US LSTA 100 Index +3bp dod.  1 x benchmark AA trade INVCO 2021-2A B covers 100.22 at 187dm / 4.6y WAL - MVOC 126.1 and coupon +160bps with clean credit metrics, Invesco managed.

    EUR MEZZ/EQUITY CLO

    A bunch of BBs traded, again at firm levels. The average traded spread is 560 dm.


  • 16 January 2025

    USD CLO AAA

    $132m of flow today across mostly AAA with little movement in spread direction, US LSTA 100 Index +5bp dod.  AAA trade 97dm-163dm with benchmarks 126dm-133dm (AAA Index 128dm).

    EUR MEZZ/EQUITY CLO

    BBs traded around 553 dm. This looks significantly tighter, for both premium and discount bonds. We’re seeing around 20 bps tightening.

    Single B’s have also ratcheted in a little – around 10 bps tighter.


  • 15 January 2025

    USD CLO AAA

    $63m of flow today, spreads overall stable with some rebalancing at the higher rating grades, US LSTA 100 Index +5bp dod.  AAA trade 91dm-203dm with benchmarks 126dm-129dm (AAA Index 128dm).

    USD CLO Mezz/Equity

    Slightly tighter in AA with trading range today for benchmarks 183dm-188dm (AA Index 188dm), with few benchmarks in other ratings, for instance at BB a number of high coupon / low MVOC profiles trading wide of the index level.

    EUR AAA CLO

    AAAs traded around 103 dm today.

    EUR MEZZ/EQUITY CLO

    AA’s flat at around 169 dm in secondary.


  • 14 January 2025

    USD CLO AAA

    $112m of flow today across the stack, spreads are stable dod.  US LSTA 100 Index +4bp dod.  AAA trade 96dm-166dm with benchmarks 132dm-136dm (AAA Index 129dm).

    USD CLO Mezz/Equity

    Few benchmarks trade in AA, BBB and BB bonds today, most of the flow in BB with a trading range 609dm - 808dm with virtually all profiles post reinvestment, no change in index levels.

    EUR AAA CLO

    Recently issued PRVD 2X ARR traded well at 100.18 / 110 dm.

    EUR MEZZ/EQUITY CLO

    AA’s flat at around 227 dm in secondary today.

    Single A’s at 305 dm.

    Two premium priced BBs at very spreads. Both traded with 102 handle, either side of 650 dm.

    BABSE 2023-2X F trades at 102.05 / 888 dm.


  • 13 January 2025

    USD CLO AAA

    $78m of flow today with a softer tone, US LSTA 100 Index -3 bp.  1 x AAA trade ARES 2017-43A A1R2 trades 127dm / 6.7y WAL (AAA Index 128dm).

    USD CLO Mezz/Equity

    Mezz has a softer feel especially higher rated mezz.  AA Index shifts wider to 192dm (+5dm), A Index shifts wider to 228dm (+7dm), BBB Index is 321dm (+3dm) and BB Index 626dm (+2dm) with only a few benchmarks trading.


  • 10 January 2025

    USD CLO Mezz/Equity

    $10m of BBB flow only today, US LSTA 100 Index flat dod.  BBB BSL bonds are all high coupon profiles trading 378dm-506dm with BBB Index 318dm, 1 x MM CLO BBB trades MCMML 2021-2A D from Monroe covers 100.29 at 410dm / 5.25y WAL.

     


  • 9 January 2025

    USD CLO Mezz/Equity

    Only $14.5m of flow in mezz bonds today, US LSTA 100 Index +4bp dod.  AAs trade 175dm-195dm with benchmarks 185dm-195dm (AA Index 187dm).

    EUR AAA CLO

    AAAs are unchanged in secondary with trading in the +123 area.

    EUR MEZZ/EQUITY CLO

    AA’s trading around 171 dm in secondary today.

    BBB’s unchanged at around 283 dm.

    HAYEM 5X ER (BB) traded weaker than our models predicted at 705 dm. It does have a low MVOC but it has a high margin.


  • 8 January 2025

    USD CLO AAA

    $134m of flow mostly in high grade today, US LSTA 100 Index +20bp on last CLO trading day 1/3.  AAA trade 96dm-153dm with benchmarks around 128dm which is where our AAA Index is.

    USD CLO Mezz/Equity

    3 x BB trade 625dm-719dm with one benchmark NEUB 2021-44A E cover 100.32 at 625dm / 6.6y WAL - Neuberger managed, MVOC 106.6, coupon +600bps and EoRP 2026 with clean credit / benchmark manager, our BB Index is 624dm.

    EUR AAA CLO

    AAAs look softer today in secondary with trading in the +155 area.

    EUR MEZZ/EQUITY CLO

    BBs look wider on the day especially INVSC 7A E which traded at 97.78 / 668 dm.

    By contrast single B’s traded well, all above par, at spreads around 617 dm.


  • 7 January 2025

    EUR AAA CLO

    EUR AAAs have opened the year steady with trading in the +122 area.

    EUR MEZZ/EQUITY CLO

    ALBAC 1X DR (BBB) traded at 328 dm.

    NEUBE 2021-2X SUB traded at 13% yield.


  • 3 January 2025

    USD CLO AAA
    US LSTA 100 Index +9bp from year end with very little flow in CLO tranches, 2 x post reinvestment AAAs trade today, AAA Index 129dm.


  • 17 December 2024

    EUR MEZZ/EQUITY CLO

    There is still a decent amount of activity in European BWICs. Spreads are range bound with AAA around 101 dm, A at 203 dm, BBB at 363 dm and BB at 714 dm.


  • 13 December 2024

    EUR AAA CLO

    AAAs are steady with trading in the +120 area.

    EUR MEZZ/EQUITY CLO

    One BB, FRNPK 1A E, traded at 637 dm.