Market Commentaries
select * from bbg_commentary where 1=1 order by date desc
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5 September 2024
USD CLO Mezz/Equity
$160m of mezz/equity flow today, US LSTA 100 Index +10bp dod as BBB CLO spreads tighten slightly. Most of flow in BBB and BB, BBB trade 288dm-467dm with benchmarks 344dm-346dm with our BBB Index tighter at 341dm. BB trade 690dm-777dm with our BB Index unchanged 652dm.
EUR AAA CLO
The AAA market is firm. Discount bonds traded around 80 dm and premium bonds around 145 dm.
EUR MEZZ/EQUITY CLO
AAs are steady today, trading at around 162 dm.
Single A’s are around 228 dm.
BBBs traded around +300 for low margin bonds and around +450 for high margin.
BBs traded around 637 dm.
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4 September 2024
USD CLO AAA
$320m of flow today, first liquidity since the holiday weekend, US LSTA 100 Index +6bp on last CLO trading day. AAA trade 104dm-201dm with benchmarks 134dm-147dm with our AAA Index 136dm.
USD CLO Mezz/Equity
The only meaningful flow is in BB bonds, 655dm-854dm trading range with benchmarks 655dm-659dm near our BB Index 652dm. Little flow elsewhere in mezz.
EUR MEZZ/EQUITY CLO
AAs are steady today, trading at around 172 dm.
Single A’s are at around 214 dm.
BBBs are also unchanged at around 311 dm.
BBs are at 677 dm.
OCPE 2019-3X FR (B rated) traded at 859 dm.
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3 September 2024
EUR AAA CLO
Today has seen the resumption of EUR BWIC secondary trading activity. AAAs have traded at an average spread of 106 dm for discount bonds and 163 dm for a premium bond. This is unchanged from recent levels.
EUR MEZZ/EQUITY CLO
AAs have traded sideways at around 162 dm.
Single A’s are around 206 dm which is a few bps tighter than we last saw them.
BBBs are steady at around 315 dm.
There are two BB trades with 100 bps spread dispersion between them. DRYD 2014-32X ER traded a little richer than our models predicted at 520 dm whereas BECLO 11X E is a little cheaper at 626 dm.
Single B’s definitely look like they have rallied. We’re seeing the secondary market today at around 638 dm.
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29 August 2024
USD CLO AAA
Only $9.3m of flow across AAA and AA small clips, US LSTA 100 Index +1bp dod. AAAs are non benchmarks and AAA Index unchanged 135dm.
USD CLO Mezz/Equity
AA Index unchanged 194dm with non benchmark clips trading.
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28 August 2024
USD CLO AAA
Only $3.2m of clips trade today across AAA and high grade mezz, no change in spreads, US LSTA 100 Index +5bp dod. AAA Index unchanged 135dm.
USD CLO Mezz/Equity
AA and A small clips trade only, with one benchmark at AA BSP 2019-18A BR covers 100.13 at 200dm / 5.2y WAL (EoRP 2026) - MVOC 128, ADR 0.8, managed by Franklin Templeton and a touch wide to our AA Index 194dm.
EUR AAA CLO
INVSC 9X A, which just priced, traded at 100.08. It has a stated margin of 165 bps.
EUR MEZZ/EQUITY CLO
There are a handful of AA trades, around 164 dm.
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27 August 2024
USD CLO AAA
$30m of flow, US LSTA 100 Index +5bp dod. AAA trade 111dm-144dm across profiles, AAA Index unchanged 135dm.
USD CLO Mezz/Equity
BBB trade 482dm-677dm with all profiles high coupon bonds, BBB Index unchanged 343dm.
EUR MEZZ/EQUITY CLO
The EUR secondary market is just getting going again with 2 x BBB trades today. Both at a small premium. ALBAC 5X D looks like a refi/reset candidate with a 656 bps margin.
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26 August 2024
USD CLO Mezz/Equity
$54m of flow todat, BBB and Equity. BBB trade 317dm-556dm with non benchmark profiles (BBB Index unchanged 343dm).
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22 August 2024
USD CLO Mezz/Equity
$39m of mezz flow, mostly BBB with some further rebalancing of the BBB Index to 343dm, BBB trade 298dm-453dm across numerous profile types. US LSTA 100 Index +6bp dod.
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21 August 2024
USD CLO AAA
$103m of flow, with some slight widening / rebalancing of BBB/BB spreads, US LSTA 100 Index +10bp dod. AAA trade 88dm-157dm (AAA Index 135dm) with one benchmark trade NEUB 2022-47A A covers 100.1 at 134dm / 4.3y WAL (EoRP 2027) - MVOC 151.9, Neuberger managed, +130bps coupon and 0.25 ADR clean metrics / benchmark.
USD CLO Mezz/Equity
Single-A, BBB and BB flow today with BBB and BB spreads rebalancing wider, BBB trading range is 308dm-483dm with the BBB Index 348dm, BB trading range is 738dm-853dm (mostly non benchmarks) and BB Index 655dm.
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20 August 2024
USD CLO AAA
$43m of flow with few benchmarks, US LSTA 100 Index +2bp dod. AAA trade 87dm-157dm with mostly post reinvestment profiles inside the index and a high coupon profile at the wide end, AAA Index 135dm.
USD CLO Mezz/Equity
A few non benhcmark BBB and BB trades today, no change in index levels.
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19 August 2024
USD CLO Mezz/Equity
$8m of BBB clips trade with no change in the BBB Index (330dm) as US LSTA 100 Index continues to tighten +10bp on last CLO trading day levels.
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14 August 2024
USD CLO AAA
Only $27m of flow today, CLO spreads unchanged, US LSTA 100 Index continues to tighten +4bp dod. AAA Index unchanged 135dm.
USD CLO Mezz/Equity
A flurry of non benchmark trades across mezz, post reinvestment, high coupon, low MVOC profiles and no changes in spreads to note.
EUR AAA CLO
AAAs are steady today. ADAGI V-X ARR and CGMSE 2019-2A A1R have traded at the wider end (around 120 dm) due to their lower MVOCs but overall spreads are around 105 dm.
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13 August 2024
USD CLO AAA
$32m of flow today, spreads unchanged, only single-As widening a touch, US LSTA 100 Index bounces +11bp on last CLO trading day. AAA trade 115dm-172dm non benchmarks (post RPE and high coupon profiles) - AAA index 135dm.
USD CLO Mezz/Equity
A flurry of non benchmark trades across the stack with single-A Index widening slightly to 227dm (+6dm).
EUR MEZZ/EQUITY CLO
Liquidity is low and spreads rangebound. MVCLO 3X C (A) traded at 363 dm. BBs have traded around 642 dm.
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12 August 2024
EUR MEZZ/EQUITY CLO
DRYD 2017-27X B1RE (AA) traded at 172 dm while ARMDA 1X CR (A) was at 239 dm, both in line with expectations.
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8 August 2024
EUR AAA CLO
AAAs look like they are still widening. Trading at around 118 dm today.
EUR MEZZ/EQUITY CLO
AAs have widened further with today’s trades at around 160 dm.
The rest of the stack is much more steady with single A’s at 235 dm, BBB at 272 dm, BB at 619 dm and B at 960 dm.
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7 August 2024
EUR MEZZ/EQUITY CLO
There are only a handful of trades today but they indicate a softening market. Single A’s traded around 224 dm and BECLO 3X ER (BB) traded at 666 dm.
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6 August 2024
EUR AAA CLO
Secondary AAAs still look to be trading down to us. Spreads today are around +123.
EUR MEZZ/EQUITY CLO
AAs have traded around 186 dm which could also be a bit softer.
Single A’s have traded around 226 dm.
BBBs are around 472 dm.
ADAGI X-X FR (B) traded at 1089 dm.
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5 August 2024
EUR AAA CLO
AAAs look softer to us at around 106 dm today.
EUR MEZZ/EQUITY CLO
RRME 2X BR (A) traded at 236 dm.
BBBs are around 429 dm, also a touch weaker.
BBs are around 573 dm which is not a big move either way.
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1 August 2024
EUR AAA CLO
AAAs are steady at around 100 dm.
EUR MEZZ/EQUITY CLO
AAs are steady at around 172 dm.
MRLPK 1X D (BBB) traded at 436 dm.
The BBs that traded today are all semi-distressed. With MVOCs from 101% to 103.50% they traded in a 1054 dm context.
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31 July 2024
USD CLO Mezz/Equity
Month end so flows are subdued, $22m of mezz notional trading with BBB and BB non benchmark bonds and US LSTA 100 Index +3bp dod, our indices finish the month AAA 135dm, AA 194dm, A 221dm, BBB 330dm, BB 626dm and B 842dm.
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30 July 2024
USD CLO AAA
$220m of supply going into month end yesterday, US LSTA 100 Index continues to grind tighter, +14bp on last Thu close whilst CLO spreads generally stable. AAA trade 117dm-155dm for 1st pays with benchmarks 132dm-143dm (AAA Index 136dm).
USD CLO Mezz/Equity
Most of flow in mid mezz A and BBB bonds but few benchmarks to note, Single-As trade 231dm-279dm with the Index unchanged 222dm and BBB trade 307dm-416dm with no benchmarks and BBB Index unchanged 329dm with an array of profiles trading.