GoldenTree prices €373.7 million; Benefit Street brings CLO; Fed buys weigh on spreads

By Cristal Cody

Tupelo, Miss., June 22 – GoldenTree Asset Management LP priced €373.7 million of notes in the manager’s first euro CLO offering of the year.

In the dollar-denominated primary market, Benefit Street Partners LLC sold $398.2 million of notes in its first new issue broadly syndicated CLO deal this year.

The manager also was in the market in March with a vintage CLO refinancing transaction.

More than €8 billion of euro-denominated CLOs have priced so far this year, according to market sources.

In the dollar-denominated market, more than $28 billion of broadly syndicated and static CLOs have priced year to date.

The Federal Reserve’s program to purchase corporate bonds weighed on securitized products last week, BofA Securities Inc. analysts said in a research note released on Monday.

“Corporates are a tough act to follow for securitized products and mortgage rates,” the analysts said. “Securitized products credit spreads moved tighter in sympathy – but were a little soft relative to corporates.”

In the secondary market, $1.2 billion of BWIC volume was seen last week, down from $1.6 billion in the prior week, according to the report.

CLO spreads were mostly wider across the capital structure except for B-rated tranches, which ended the week unchanged at the Libor plus 1,550 basis points average, the analysts said.

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