Securitized secondary volume jumps in lower-rated issues; CLO mezzanine spreads better

By Cristal Cody

Tupelo, Miss., Nov. 2 – Secondary trading activity soared in non-investment-grade CBO/CDO/CLO issues in the previous session.

More than $500.9 million of lower-rated securities were traded on Wednesday, compared to $66.43 million of issues traded on Tuesday and $42.02 million of volume on Monday, Trace reported.

In high-grade securitized secondary trading, $103.82 million of issues traded on Wednesday. During Tuesday’s session, trading volume totaled $106.15 million, while $116.65 million of high-grade issues traded on Monday.

CLO AAA spreads have been mostly unchanged over the past month in the Libor plus 110 basis points area, according to market sources.

Lower in the capital structure, mezzanine spreads ended the previous week flat but better on the month with BBBs in the Libor plus 300 bps area, according to BofA Merrill Lynch.

Mezzanine spreads tightened about 25 bps during October.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.