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 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%.


  • 4 February 2025

    USD CLO Mezz/Equity

    $47m of flow today across mezz/equity with mezz spreads tighter.  US LSTA 100 Index +2bp dod.  Single-As trade 189dm-223dm with benchmarks 214dm-223dm (Single-A Index 217dm).  BB trade 608dm-724dm whilst single-Bs trade 854dm-1477dm with these all non benchmark post reinvestment bonds (single-B Index 818dm).


  • 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.