Apex prices $462.5 million CLO; Brigade taps European CLO primary market; spreads flat

By Cristal Cody

Tupelo, Miss., March 19 – The U.S. and European CLO primary markets remain active in March with details out on two new deals.

Apex Credit Partners LLC sold $462.5 million of notes in its transaction.

Brigade Capital Europe Management, LLP priced €410.55 million of euro-denominated CLO notes.

U.S. CLO secondary trading also has been active as “one of the consequences of the increased volatility seen year to date,” according to a BofA Merrill Lynch research note released on Monday.

“Average combined CLO and CDO weekly trading volume has totaled $337 [million] 2018 YTD, relative to $270 [million] in 2017, according to data from Finra,” the note said. “This increase has been driven by higher volumes of IG bonds.”

BWIC volume totaled more than $790 billion for the previous week, compared to $1.32 billion in the prior week, according to the note.

“Average weekly BWIC volume is tracking just over $500 [million] 2018 YTD, relative to $333 [million] across 2017,” BofA Merrill Lynch analysts said in the note. “Meanwhile average combined CLO and CDO weekly trading volume has totaled $337 [million] 2018 YTD, relative to $270 [million] in 2017. This increase has been driven by increased trading of IG bonds.”

U.S. CLO spreads ended Friday mostly firm, according to the note. AAA-rated spreads were unchanged at Libor plus 97 basis points.

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