Bain prices €362.5 million CLO; Oaktree brings $553.1 million; secondary volume thins

By Cristal Cody

Tupelo, Miss., Aug. 28 – Primary action remained steady in the CLO market in late August, while secondary market activity has slowed.

In new issuance, Bain Capital Credit, Ltd. priced a €362.5 million euro-denominated CLO transaction.

Looking at the U.S. primary market, Oaktree Capital Management LP placed a $553.1 million three-tranche CLO.

More than €10 billion of new issue CLOs have priced year to date, while about $62 billion of new U.S. dollar-denominated CLOs have priced so far in 2017, according to market sources.

New issue spreads have tightened considerably since the start of the year, according to a BofA Merrill Lynch analysts’ report released on Monday.

“Compared to the beginning of the year, new-issue U.S. CLO spreads have tightened in by about 20, 20, 45, 90, 110, and 85 [basis points] from AAA to single-B,” the analysts said.

In the secondary market, volume slowed over the past week with $161 million of bonds appearing on BWIC lists, according to the note.

“Bid levels remained very strong, with much participation coming from real money accounts,” the analysts said. “No equity items were up for bid.”

Spreads were flat across the capital structure, except BBBs, which headed out on Friday 25 bps tighter on the week at Libor plus 325 bps, the analysts said.

CLO AAA-rated notes were flat on the week at Libor plus 110 bps.

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