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
  • 10 June 2024

    USD CLO AAA

    Only $27m of flow today, small clips across the stack, CLO spreads unchanged and US LSTA 100 Index +7bp dod.  AAA trades are all post reinvestment and inside the AAA Index 139dm.

    USD CLO Mezz/Equity

    BBB trade 356dm-446dm (BBB Index 348dm) with high coupon / post reinvestment profile bonds exchanging hands.  Similar with BB with trading range 672dm-853dm (BB Index 628dm) with weaker manager/high coupon profiles trading.

    EUR AAA CLO

    With the resumption of EUR BWIC trading we can see AAAs trading at 92 dm.

    EUR MEZZ/EQUITY CLO

    BBBs have traded around 290 dm.


  • 7 June 2024

    USD CLO Mezz/Equity

    Only $6m of low mezz bonds exchanged hands today, all 3 clips are BB/B and post reinvestment non benchmarks, no change in CLO indices today.  US LSTA 100 Index +2bp dod.


  • 6 June 2024

    USD CLO AAA
    $335m of flow, with the bulk of this non benchmark AAA paper, US LSTA 100 Index +24bp since month end whilst AAA Index unchanged 139dm.

    USD CLO Mezz/Equity

    Tightening across BBB and BB with our indices now BBB 348dm and BB 628dm with benchmarks tighter in line with market sentiment.


  • 31 May 2024

    USD CLO AAA

    Only $35m of trading today with month end here, CLO spreads flat on the day with US LSTA 100 Index +6bp dod.  No benchmark AAAs trade with AAA Index unchanged 139dm.

    USD CLO Mezz/Equity

    2 x equity trade today, both post reinvestment and trade close to their NAVs, see PriceABS data sheet for details, Sub80 assets on both trades are in 6.5%-10% region, NAVs 4-12% area and profiles of semi-distressed/legacy equity.


  • 30 May 2024

    USD CLO Mezz/Equity

    US LSTA 100 Index +2bp dod, no movement in CLO spreads with non benchmark mezz trading, only $17m trading ahead of month end slowdown and Global ABS next week.


  • 29 May 2024

    USD CLO AAA

    $48m of flow today, single-Bs slightly tighter with other spreads unchanged, US LSTA 100 Index unchanged.  1 x AAA benchmark trade today AGL 2021-12A A1 cover 100.14 at 145dm / 3.7y WAL near our AAA Index 138dm, ADR 1.07% which is slightly higher to benchmark.

    USD CLO Mezz/Equity

    A light session in mezz with few benchmarks to note, one benchmark in single-B OCT63 2024-2A F covers 89.88 at 842dm / 10y WAL (EoRP 2029) with clean metrics, MVOC 105.33 (single-B Index 851dm).

    EUR AAA CLO

    AAAs look to be on a tightening trend. Bonds in amortisation traded around 75 dm while other bonds still in their RPE date were around 110 dm.

    EUR MEZZ/EQUITY CLO

    JUBIL 2014-11X BR (AA rated), which is amortising, traded at 125 dm.

    Single A’s traded around 205 dm.

    BBs are steady at around 678 dm.

    Single B’s traded around 905 dm which reflects the tighter levels we’ve seen in the primary market eg Anchorage 10 printing at 850 / 980.


  • 28 May 2024

    USD CLO AAA

    $65m of flow in AAA and BB today with spreads flat, US LSTA 100 Index +11bp on last CLO trading day.  AAA trade 125dm-145dm (AAA Index unchanged 139dm).

    USD CLO Mezz/Equity

    BB trades are all non benchmarks, trading range is 677dm-887dm with BB Index unchanged 637dm, with high coupon or low MVOC profiles trading today.

    EUR MEZZ/EQUITY CLO

    Just a handful of single A trades today. Spreads are steady – at around 187 over.


  • 23 May 2024

    USD CLO AAA

    $70m of flow today, CLO spreads flat.  US LSTA 100 Index +3bp dod.  AAA trade 129dm-145dm with our AAA Index unchanged 139dm.

    USD CLO Mezz/Equity

    Few benchmark mezz trade today to note with mezz spreads flat dod.

    EUR MEZZ/EQUITY CLO

    BBBs edging tighter with today’s trades around 290 dm.

    BBs are steady at around 678 dm.

    ARBR 8X FR (B rated) traded around 927 dm.

    Equity continues to trade well with three trades today all around 14% to 15% yield.


  • 22 May 2024

    USD CLO AAA
    $45m of flow today, no movement in spreads with some minor rebalancing of modelling assumptions, US LSTA 100 Index +3bp dod.  AAA all post reinvestment trade 92dm-120dm inside our AAA Index 139dm.

    USD CLO Mezz/Equity

    BB trading dominates again, trading range dispersion across 16 trades is 548dm-1104dm with no benchmarks trading (post reinvestment profiles, weaker MVOC or recent vintage high coupons), our BB Index remains at 637dm.

    EUR MEZZ/EQUITY CLO

    It’s been a day of mezz trading today. BBBs look to be rangebound at the moment with secondary trades around 492 dm today.

    BBs are trading up at around 673 dm today.

    In single B space we see BABSE 2018-2A F trading at 1117 dm because of its credit deterioration and downgrade while PENTA 2020-8A FR, which is clean, traded at 902 dm.

    There are four equity trades and all have traded well, at between 12% and 15% yields.


  • 21 May 2024

    USD CLO AAA

    $232m of flow with few benchmarks trading though, spreads largely unchanged, US LSTA 100 Index +2bp dod.  AAA trade 74dm-174dm with the AAA Index 139dm with a MM CLO (in reinv) trading 170dm.

    USD CLO Mezz/Equity

    Majority of the flow again in BB but few benchmarks trade, trading range dispersion is 557dm-914dm with one benchmark CGMS 2021-7A D CVR 100.39 at 650dm / 7.25y WAL - Carlyle the manager, EoRP 2026, MVOC 105.9 and clean metrics (BB Index 637dm).

    EUR AAA CLO

    Secondary AAAs have rallied again with trades today around 101 dm. TIKEH 4A A1, PRVD 2A AR and TCLO 6X AR all traded in April between 10 cents and 30 cents lower than today’s covers.

    EUR MEZZ/EQUITY CLO

    BBs have tightened as well and are now at 626 dm in secondary.

    A bit of a mixed bag in the single B space. The bond that is performing well, BOPHO 4X F, traded very tight at 615 dm but this was in line with dealer px talk. The bond that is not performing so well, BCCE 2021-1X F, traded at 1091 dm which is nearly 10 pts back of dealer talk.


  • 20 May 2024

    USD CLO Mezz/Equity

    Only $14m of mezz flow today, US LSTA 100 Index +9bp on last CLO trading day, small BB clips dominate with little change on our index direction.


  • 16 May 2024

    USD CLO AAA

    $160m of flow today, with slight tightening in high grade bonds, US LSTA 100 Index +2bp dod.  AAA trade 109dm-150dm with benchmarks 138dm-141dm (AAA Index 139dm) with a 2nd pay post reinvestment bond CEDF 2019-11A A2R cover 100.17 at 164 / 4.9y WAL.

    USD CLO Mezz/Equity

    Most of the flow again is in BBB and BB bonds, BBB trade 309dm-522dm with benchmarks 352dm-371dm (BBB Index 362dm) with post reinvestment / high MVOC profiles inside the index with the post reinvestment / low MVOC profiles / high coupon bonds wide of the index.  BB trade in a very wide dispersion 513dm-1034dm with 1 key benchmark OAKC 2020-5A E cover 100.51 at 646dm / 5.8y WAL - EoRP 2025, MVOC 108, very low ADR 0.09 and a benchmark manager Oak Hill.


  • 16 May 2024

    EUR AAA CLO

    Secondary AAAs have rallied a few bps with trades today taking place around 109 dm.

    EUR MEZZ/EQUITY CLO

    AAs are unchanged at around 177 dm in secondary.

    BBBs are tighter at around 322 dm.

    Similarly BBs are also rallying at 697 dm in secondary.

    There are three EUR equity trades via BWIC. CIFCE 3X SUB is the cleanest and traded around 13.5%. The other two are around 21% yield.


  • 15 May 2024

    USD CLO Mezz/Equity

    Limited flow today, $23m with no change in CLO spreads, US LSTA 100 Index +2bp dod.  The majority of trades are post reinvestment with most of flow in BB with trading range 552dm-861dm non benchmark (BB Index 638dm).


  • 14 May 2024

    USD CLO AAA

    $130m of flow today, few debt benchmarks trade, US LSTA 100 Index +1bp dod.  AAA trade 86dm-163dm with 2nd pays trading towards the back end of this range 145dm-163dm.  AAA Index unchanged 140dm.

    USD CLO Mezz/Equity

    Few benchmarks and BB saw most flow, trading range 524dm-996dm all non benchmarks with the BB Index unchanged 638dm.

    EUR AAA CLO

    Secondary AAAs look a little softer on the day even though Margay II and North Westerly VIII priced at the tight end of new issue levels.

    EUR MEZZ/EQUITY CLO

    BBBs traded around 336 dm today.

    BBs are a little wider at around 723 dm.


  • 13 May 2024

    USD CLO AAA

    Only $28m of flow today with little movement in CLO spreads, US LSTA 100 Index continues to tighten +9bp dod.  AAA trades are all post reinvestment in a 92dm-140dm range, our AAA Index is unchanged 140dm.

    USD CLO Mezz/Equity

    Flow is mostly in BB and BBB with few benchmarks and small ticket trades, BBB trade 332dm-480dm with benchmarks 357dm-366dm with our BBB Index 360dm.


  • 10 May 2024

    USD CLO AAA

    $74m of flow mostly non benchmark AAAs, US LSTA 100 Index +8bp dod and our AAA Index tightens slightly to 140dm.


  • 9 May 2024

    USD CLO AAA

    $80m of flow, US LSTA 100 Index continues to tighten, no benchmark AAA trades 119dm-166dm range for post reinvestment / high coupon bonds.

    USD CLO Mezz/Equity

    BB saw the most flow with a very wide trading dispersion 597dm-1439dm given the array of profiles trading, we have tightened our BB Index to 637dm.

    EUR MEZZ/EQUITY CLO

    AA’s traded around 174 dm today. HAYEM 1X B1R has a weak credit profile and traded wide at 211 dm.

    3 x BBBs traded, all have weak profiles and traded wider than benchmark bonds at around 407 dm.

    Single B’s also look a little softer to us at around 920 dm on the day.

    CORDA 4X SUB traded at 50h / around 10% yield, in line with dealer px talk and at what looks to us as a strong level.


  • 8 May 2024

    EUR AAA CLO

    AAAs are steady today at around 115 dm.

    EUR MEZZ/EQUITY CLO

    NEWH 1X DRR (BBB) traded at 406 dm.

    The BB trades are on the wide side, at around 800 dm, but they all have weak credit profiles and low MVOCs.


  • 7 May 2024

    USD CLO AAA

    $67m of flow across the stack, US LSTA 100 Index +36bp on last CLO trading day.  AAA benchmarks tighter 138dm-141dm with our AAA Index 141dm.

    USD CLO Mezz/Equity

    Most of mezz flow in BBs with trading range 561dm-1191dm with benchmarks 638dm-660dm (BB Index 645dm).

    EUR MEZZ/EQUITY CLO

    AAs are tighter, in line with the way the rest of the stack has moved over the last couple of weeks. Trades today are around 147 dm.

    Single A’s also look firmer, at around 208 dm.

    PENTA 2019-6A DR (BBB) traded at 341 dm.

    BBs are steady at 673 dm in secondary.

    PLMER 2022-1A F (B) traded at 936 dm.


  • 2 May 2024

    USD CLO AAA

    $108m of flow today across the stack, CLO BBs tighten slightly as US LSTA 100 Index is +5bp dod.  AAAs 113dm-159dm with benchmarks around our Index 140dm-143dm (AAA Index 142dm).

    USD CLO Mezz/Equity

    Most of the flow is in BBs today in the mezz category, with a trading range dispersion 583dm-848dm with benchmarks 650dm-656dm (BB Index 646dm) with 2 x BB MM CLOs post reinvestment bonds in 800dm-early 800s dm area.