CLO market activity quiet in post-holiday session; secondary trading volume thin

By Cristal Cody

Tupelo, Miss., July 5 – Strong deal action in the U.S. CLO market is expected over the rest of the year but activity stayed fairly quiet in the post-holiday session on Wednesday.

Market analysts expect as much as $90 billion of new deal volume for the year, not including refinancings which continue at a strong pace.

Nearly $100 billion of vintage U.S. CLOs have been refinanced year to date, while about $44 billion of new CLOs have priced, according to market sources.

Secondary market activity has been light during the holiday week with not enough volume to register on Monday, according to the latest data from Trace. The bond markets were closed on Tuesday for the Fourth of July holiday.

On Friday, $71.44 million of investment-grade CBO/CDO/CLO issues and $63.77 million of non-high-grade securities were traded, according to Trace.

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