Market Commentaries
select * from bbg_commentary where 1=1 order by date desc
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12 April 2024
EUR MEZZ/EQUITY CLO
Just one BBB and one BB secondary BWIC trade today. See PriceABS for details but both are in line with current spread levels.
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11 April 2024
USD CLO AAA
$92m of flow today, SubIG spreads softer and US LSTA 100 Index -2bp dod. AAA trade 101dm-147dm with one benchmark AGL 2021-13A A1 CVR 100.18 at 144dm / 4.1y WAL (EoRP 2026, MVOC 157.3, AGL manager and clean metrics). AAA Index 143dm.
USD CLO Mezz/Equity
Most of the flow is in BBB and BB where markets are slightly softer, BBB trade 322dm-441dm with benchmarks 339dm-361dm (BBB Index 352dm). BB bonds trade 701dm-937dm with our BB Index shifting slightly wider to 658dm, there is one rare MM CLO trade to note, a post reinvestment bond LSHR 2019-2X ER CVR 97.77 at 958dm / 7.5y WAL which feels softer than other comps this year.
EUR AAA CLO
AAAs today at 121 dm.
EUR MEZZ/EQUITY CLO
Premium BBBs traded around 511 dm.
BBs are around 694 dm today.
Single B’s around 1000 dm.
SCULE 9X SUB traded better than we expected at 83h / 15.7% yield. It has an ADR of 1.47%.
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9 April 2024
USD CLO AAA
Plenty of liquidity today, $283m changing hands and a firmer tone all round, US LSTA 100 Index +2bp dod and SubIG spreads are firmer on the day. AAA trade 81dm-136dm with negligible benchmarks, AAA Index is 143dm.
USD CLO Mezz/Equity
14 x Single-A trade 220dm-261dm with benchmarks 235dm-238dm near our Index 237dm. BB trade 563dm-921dm across an array of profiles, we have tightened our BB Index to 652dm. Single-B trade 782dm-828dm with benchmarks 825dm-828dm, we shift our single-B Index tighter to 866dm.
EUR MEZZ/EQUITY CLO
AAs traded around 188 dm today.
Single A’s look tighter at around 224 dm today.
BBBs also look tighter today at 320 dm.
BBs traded around +781 today.
Single B’s look softer at around 985 dm.
Four equity clips traded today. Apart from BECLO 3X SUB which traded well at 18% yield the others implied a softening in the equity market with yields more in the 30’s.
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8 April 2024
USD CLO AAA
16 covers and $35m of liquidity today, CLO spreads remain firm but broadly flat. US LSTA 100 Index continues to grind tighter +2bp dod. Only 1 x post reinvestment AAA trade today non benchmark, index unchanged.
USD CLO Mezz/Equity
AA trade 168dm-193dm with benchmarks 192dm-193dm (EoRP 2027) right on our AA Index 192dm. Most of the remaining flow in mezz at BBB with 6 trades all non benchmarks trading range 321dm-479dm (post reinvestment / weak MVOC names) with BBB Index unchanged 348dm.
EUR MEZZ/EQUITY CLO
AVOCA 11X B2R, an original AA upgraded to AAA, traded at 143 dm.
Single A’s traded unchanged at 236 dm.
BBBs traded around 488 dm with the premium price trades implying a high likelihood of call.
BBs look a little softer to us with today’s trades around 776 dm.
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5 April 2024
USD CLO Mezz/Equity
Only 3 trades today, US LSTA 100 Index +9bp with notional trading $13m all IG mezz all non benchmarks with little movement in our index.
EUR AAA CLO
There are a lot of AAA trades. Trading at 134 dm they look marginally tighter on the day.
EUR MEZZ/EQUITY CLO
MDPKE 14X ER (BB) traded at 650 dm which is in line with recent levels.
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4 April 2024
USD CLO AAA
$85m of flow today, slight tightening at AAA, US LSTA 100 Index -2bp dod. AAA trade 139dm-199dm with benchmarks 139dm-142dm with our AAA Index 143dm.
USD CLO Mezz/Equity
Mostly BB and BBB flow, all non benchmarks. BBB trade 318dm-508dm (BBB Index 349dm) and BB trade 727dm-1096dm (BB Index 677dm).
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3 April 2024
USD CLO AAA
$73m of flow across IG and SubIG, CLO spreads flat, US LSTA 100 Index +2bp dod. AAA trade 146dm-149dm with our AAA Index unchanged 144dm.
USD CLO Mezz/Equity
Few benchmarks to note in mezz trading, with BBs trading 698dm-812dm with no benchmark bonds (BB Index unchanged 677dm).
EUR AAA CLO
BOPHO 5X A1 (AAA) traded at 130 dm.
EUR MEZZ/EQUITY CLO
There are a number of BBB trades. The average traded spread is 370 dm which appears a little softer but we think it is explained by the number of bonds trading with low MVOCs.
BBs have traded around 659 dm which is a little firmer.
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2 April 2024
USD CLO AAA
$57m of liquidity today, US LSTA 100 Index +14bp on last CLO trading date. CLO spreads broadly unchanged. AAA trade 111dm-150dm (AAA Index 144dm) with a 2nd pay KKR 32A A2 cover 100.08 at 188dm / 5.1y WAL (EoRP Jan-24).
USD CLO Mezz/Equity
Most of the flow is in BB and B today with few benchmarks trading, BB trade 718dm-910dm (BB Index 677dm) andf single-Bs trade 947dm-1070dm (Single-B Index 939dm) with benchmarks 947dm-969dm
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28 March 2024
EUR MEZZ/EQUITY CLO
Only 4 x BBB trades to look at. The Invesco bonds traded wider than their peers. To some extent this was due to their lower than normal MVOCs. The average spread on the day is +389.
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27 March 2024
EUR AAA CLO
It’s been an active day in secondary trading today. AAAs traded around 117 dm today.
EUR MEZZ/EQUITY CLO
AAs have traded in a wide range today – from 125 dm for the delevering AQUE 2017-2X B1 to 298 dm for the just reset VOYE 6X B.
Single A’s traded around 243 dm, a few bps tighter.
BBBs are steady at around 428 dm.
BBs look a little softer on the day at around 681 dm.
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26 March 2024
EUR AAA CLO
Light trading ahead of the Easter break and spreads look rangebound. AAAs are around 143 dm today.
EUR MEZZ/EQUITY CLO
MECLO 2023-1X B1 (AA) at 284 dm and BBs around 711 dm.
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25 March 2024
EUR AAA CLO
Voya Euro VI, which just reset, traded at a premium (100.09).
EUR MEZZ/EQUITY CLO
HARVT 29X B (AA), a premium price bond traded at 318 dm.
HARVT 12X CR (A) traded up at 190 dm. The deal is amortising and this bond has a good MVOC.
CGMSE 2022-3X C (BBB) traded at 587 dm.
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22 March 2024
EUR MEZZ/EQUITY CLO
Very little activity today in the run up to Easter.
CGMSE 2017-1X A2AR (AA) traded at 216 dm.
A couple of single A’s also traded. AQUE 2017-1X CR is delevering and traded at 182 dm. CGMSE 2017-1X BR traded at 278 dm.
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21 March 2024
USD CLO AAA
$79m of flow, with some realignment once again in BB bonds with other levels broadly flat, US LSTA 100 Index saw a fall -20bp dod. AAA trade 139dm-147dm with our AAA Index unchanged 144dm.
USD CLO Mezz/Equity
AA trade 179dm-207dm with all profiles non benchmark, there is a MM CLO AA GOCAP 2015-25A BR covers 100.02 in a small 1m clip at 212dm / 2y WAL (post reinvestment profile). BBs trade 677dm-837dm with one benchmark SYMP 2020-22X E covers 99.19 at 677dm / 5.6y WAL (EoRP 2025) MVOC 105.5, coupon +625bps, clean credit and Symphony the manager, small clip 1.3m notional. BB Index 679dm.
EUR MEZZ/EQUITY CLO
AA’s are unchanged at around 196 dm.
RFTE 2019-1X C (A rated) traded at 269 dm.
BBBs look like they are drifting slightly wider with today’s trades around 390 dm.
BBs are steady at around 666 dm.
Single B’s look a little firmer and traded today around 875 dm.
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20 March 2024
EUR MEZZ/EQUITY CLO
A handful of AA’s and A’s traded today. Spreads are unchanged. AA’s are around 198 over and single A’s around +239.
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19 March 2024
USD CLO AAA
$291m of flow today, CLO spreads flat on the day, US LSTA 100 Index +2bp dod. $260m of flow in AAAs in a trading range 119dm-165dm, benchmarks 138dm-145dm (AAA Index 144dm).
USD CLO Mezz/Equity
$30m of mezz flow, the majority in BB bonds, trading range 657dm-1459dm, one benchmark trade to note AIMCO 2019-10X ER cover 98 at 680dm / 5.2y WAL (EoRP Jul-24), MVOC 105.2 and clean credit metrics with the manager AIMCO.
EUR AAA CLO
AAAs traded a few bps firmer at 131 dm in secondary.
EUR MEZZ/EQUITY CLO
AAs are steady at 211 dm.
CGMSE 2018-2X B2 (A rated) traded at 231 dm.
BBBs trade around 314 dm but VOYE 1X D trades a lot tighter due to the combination of low margin and high MVOC.
BBs look a few bps softer today at around 641 dm.
Single B’s trade around 1027 dm mainly driven by DRYD 2017-27X FR at 1176 dm which is due to its low MVOC of 102.15% and its downgrade to C.
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18 March 2024
USD CLO AAA
Subdued flow with $48m of liquidity, mostly high grade, US LSTA +6bp on last CLO trading day. AAA trade 140dm-209dm with benchmarks 140dm-149dm and a high coupon bond HLSY 2023-7A A covering at 101.08 at 209dm (+225bps coupon) with EoRP 2026. AAA Index 143dm. There is a 2nd pay bond APID 2021-36A A2 cover 100.02 at 168dm / 4.2y WAL (EoRP 2026) which is tight to other 2nd pays seen earlier this year, rare trade.
USD CLO Mezz/Equity
Most of the mezz flow is in AA bonds with $15m across 8 bonds trading in a 183dm-233dm range, benchmarks trading 194dm-198dm (AA Index 194dm).
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15 March 2024
USD CLO AAA
$31m of flow, BB spreads tighten slightly and US LSTA 100 Index +1bp dod. 1 x AAA trade post reinvestment bond VENTR 2017-29A AR covers 100a at 132dm inside our AAA Index 144dm.
USD CLO Mezz/Equity
Most of the flow is in single-A and BB, single-As trade 213dm-258dm with virtually all post reinvestment non-benchmarks (single-A dm 242dm). 10 x BB trade 604dm-980dm, our BB Index 677dm with some weaker MVOC bonds (104-105 area) holding up on a dm basis firmer so have tightened our index slightly.
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14 March 2024
USD CLO AAA
$157m of flow, CLO spreads broadly flat with some mild compression at single-A, US LSTA 100 Index +3bp dod. AAA bonds all non benchmarks index unchanged 144dm.
USD CLO Mezz/Equity
Good single-A flow with a trading range 223dm-385dm with benchmarks 224dm-256dm and our single-A Index 242dm. BBB bonds trade 325dm-589dm with benchmarks 325dm-359dm (BBB Index 343dm). Plenty of BB flow with $23m across 12 trades, trading range 671dm-1283dm with one benchmark bond TREST 2017-1A DR covers 99.51 at 671dm / 4.9y WAL - MVOC strong 106.9, coupon +625bps, clean credit and APC the manager (EoRP April 2024) with the shorter wal pulling this slightly inside our BB index 696dm.
EUR AAA CLO
AAAs are steady in secondary at around 129 dm.
EUR MEZZ/EQUITY CLO
AAs look like they have firmed up a few basis points, even though this has not been reflected in recent primary pricing. Trades today are around 200 dm.
CIFCE 4X E (BB) traded at 631 dm.
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13 March 2024
USD CLO AAA
$248m of flow with CLO spreads generally flat with some modest tightening at BBB. AAA trade 140dm-144dm with these bonds all benchmarks (AAA Index 144dm).
USD CLO Mezz/Equity
AA trade 170dm-208dm with benchmarks 189/190dm (AA Index 194dm). $45m of BBB liquidity with a trading range of 307dm-519dm with benchmarks 333dm-348dm, our BBB Index 342dm), bonds wide of the index are typically scaled back given MVOCs are lower than benchmark level of 111% whilst there are some high coupon / reinvesting deals also wide of the index. BB bonds trade 609dm-937dm, all non-benchmark profiles.
EUR MEZZ/EQUITY CLO
INVSC 1X BRE (AA) traded at 206 dm. PURP 1X B which is an orig AA but AAA now and paying down traded at 130 dm.
Single A’s traded around 248 dm, in line with new issue spreads.
BBBs traded around 352 dm.
BBs are around 655 dm.
Single B’s around 914 dm.
Both equity trades are in the 15% to 17% yield range.
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12 March 2024
USD CLO AAA
$200m of flow today, US LSTA 100 Index continues to tighten +5bp dod and CLO spreads remain firm but flat on the day. AAA saw most liquidity with $170m of liquidity with a trading range 126dm-174dm with benchmarks 141dm-150dm (AAA Index 144dm).
USD CLO Mezz/Equity
Most of the flow was in AA bonds, $11m across 7 bonds trading 196dm-216dm but small clips post reinvestment (AA Index 193dm) with weaker managers trading wide of the Index, WBOX 2021-3A B covers 100.03 at 213dm / 5.7y WAL with Whitebox the manager. BB bonds trade 693dm-734dm post reinvestment profiles (BB Index 696dm).