CLO October deal pipeline light; European mezzanine notes active in secondary trading

By Cristal Cody

Tupelo, Miss., Oct. 9 – The CLO deal pipeline over October is expected to stay light, according to market sources on Friday.

Looking forward, offerings include a $412.5 million CLO transaction structured to comply with European risk retention regulations from ICG Debt Advisors LLC.

ICG Debt Advisors plans to bring the ICG US CLO 2015-2, Ltd./ICG US CLO 2015-2 LLC transaction, its second CLO deal of the year, via Morgan Stanley & Co. LLC.

Year to date, U.S. CLO volume is nearly $90 billion, according to Prospect News data.

Market analysts forecast about $100 billion of total issuance for the year.

Secondary trading remains more active than the primary market, sources report.

European mezzanine bonds were active on BWIC lists over the week ahead of the U.S. Columbus Day holiday on Monday, a source said.

U.S. CLO 2.0 BB-rated notes continue to remain weak in the 700 basis points-plus area, according to a market source.

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