| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers S > Headlines for St. Paul’s CLO III Ltd. > News item |
CLO spreads flat; new AAA notes hold 135 bps-140 bps spread, euro tranches average 132 bps
By Cristal Cody
Tupelo, Miss., Oct. 10 - Credit spreads in the collateralized loan obligation market continue to remain flat, according to informed sources on Thursday.
New AAA-rated tranches have priced with spreads of Libor plus 135 basis points to 140 bps, while triple A-rated notes have held in the 140 bps area in the secondary market, sources said.
"New issue CLO credit have flattened during the past two months," Morgan Stanley & CO. LLC analyst Vishwanath Tirupattur said in a note.
CLO prices in both the U.S. and European markets climbed in September, Tirupattur said.
"US CLO prices rallied during September, with AAAs up 0.22 point, AAs up 0.8 point, single-As up 1.7 points, BBBs up 1.75 points and BBs up 2.25 points," he said.
Euro-denominated CLO prices likewise rallied during September, with AAA-rated notes up 0.25 point, AA-rated notes up 0.65 point, single-A tranches up 1.25 points, BBB notes up 2.12 points and BB-rated notes up 2.13 points, according to Tirupattur.
The AAA-tranches in new European CLO transactions have priced with spreads that ranged from 125 bps to 140 bps, averaging 132 bps, he said.
Pipeline includes about $12 billion
The deal calendar is expected to stay steady through the remainder of the year with about $12 billion of CLO transactions in the pipeline, sources said on Thursday.
Eaton Vance Corp. plans a couple of CLO transactions in the U.S. market, while Intermediate Capital Group plc expects to price the €500 million St Paul's CLO III Ltd. and NIBC Bank NV intends to sell the €300 million North Westerly CLO IV, according to market sources.
© 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.