CIFC prices $497 million CLO; July primary action light; secondary active; AAAs tighten

By Cristal Cody

Tupelo, Miss., July 27 – CIFC Asset Management LLC priced $497 million of notes in the manager’s first new CLO deal of 2020.

So far in July, $7 billion of broadly syndicated CLOs have priced, Wells Fargo Securities, LLC analysts said in a note on Monday.

Year-to-date volume totals about $42 billion with total supply forecast to end the year at $65 billion.

Meanwhile, the secondary market has been strong so far this year.

The year already is the “most active year in CLO secondary volume,” Wells Fargo analysts said.

Average monthly BWIC volume of mostly high-grade bonds has posted new records this year of nearly $5 billion per month.

“By dollar volume, AAA and BB tranches have the highest share of BWICs, followed by BBB’s,” the Wells Fargo analysts said. “AAA’s share of BWIC dollar volume has been fairly steady since the end of 2017, at 45-50%.”

CLO BB tranches have accounted for about 15% of annual BWIC volume since 2017.

Over the past week, AAA/AA CLOs outperformed junior mezzanine tranches, BofA Securities, Inc., analysts said in a research note.

“CLOs maintained recent strong tone, although quality preference remains: AAA/AAs were 5/10 [basis points] tighter while BB/B were 15/25 bps wider,” the BofA analysts said.

AAAs were last seen at Libor plus 160 bps on average last week, tighter than Libor plus 175 bps average in the previous week.

BB tranches widened last week to a Libor plus 1,125 bps average from Libor plus 1,110 bps in the week prior.

AAAs are 47 bps tighter than where seen in December.

CIFC brings 2020-I CLO

CIFC Asset Management priced $497 million of notes due July 15, 2032 in the CIFC Funding 2020-I, Ltd./CIFC Funding 2020-I, LLC offering, according to market sources.

The CLO sold $290 million of class A-1 floating-rate notes at Libor plus 170 bps at the top of the capital stack.

Barclays was the placement agent.

The CLO is backed primarily by broadly syndicated first-lien senior secured loans.

CIFC priced six new CLOs in 2019.

The investment adviser is based in New York.

© 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.