BlueMountain brings CLO; secondary market active; vintage CLO portfolio prices rebound

By Cristal Cody

Eureka Springs, Ark., April 14 – BlueMountain Capital Management LLC priced an upsized $424 million CLO from an expected $398.95 million offering, according to a market source on Thursday.

The BlueMountain CLO 2016-1 Ltd./BlueMountain CLO 2016-1 LLC transaction priced via J.P. Morgan Securities LLC. Final deal details were not available by press time.

In the secondary market, more than $60 million of mostly mezzanine tranches were on BWIC lists on Thursday, a market source said.

In the previous session, Trace reported that 33 investment-grade CBO/CDO/CLO issues totaling $183.71 million and 42 non-investment-grade CBO/CDO/CLO securities totaling $235.12 million were traded.

Citigroup Global Markets Inc. analysts said in a new U.S. CLO monthly scorecard report for April that the median U.S. CLO 2.0 portfolio price rebounded by 2.1 points in March to $94.10.

“The median US CLO 2.0 portfolio price finished 0.4 [point] higher in the first quarter, but is still down 4.2 [points] from a year ago,” the analysts said.

“Managers shed credit risk in 2016 Q1 and built positions to partially offset the par losses,” the Citigroup analysts said. “CLO managers on average reduced 2nd lien exposure from 2.3% to 2.0% and commodity exposure from 5.8% to 5.3% in 2016 Q1, even though it came at the expense of losing notional par.”

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