Nearly $1 billion of secondary collateralized paper trades on quiet primary day

Chicago, Sept. 18 – Nearly $1 billion of CBO/CDO/CLO traded in the secondary market on a quiet Friday when no new CLO transactions emerged.

Since mid-March only three weeks have crossed the $2.5 billion threshold, in terms of new issuance, with only one other week crossing the $2 billion mark.

However, bank loan supply has turned a corner with 2020 lending now ahead of 2019, with $556.45 billion in 779 deals and $520.3 billion 760 deals, respectively.

On Friday, investment grade collateralized paper traded at a respectable volume of $655.48 million, according to Trace data.

In 122 trades, the average price was 98.9 and the weighted average price was 99.3. The previous day posted 99.3 and a weighted average price of 99.6.

In the low-grade CBO/CDO/CLO secondary market, $276.42 million moved around in 119 trades.

The average price was 75.5 with a weighted average price of 73.2. The average price on Thursday was 82 and the weighted average price was at 65.5.

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