High-grade secondary CLO supply tops $1 billion; AAAs firm 10 bps; Invesco reprices

By Cristal Cody

Tupelo, Miss., Aug. 14 – While broadly syndicated CLO primary action remains light, secondary supply has been heavy over the week.

On Thursday, $1.08 billion of high-grade CBO/CDO/CLO paper was traded, compared to $640.94 million on Wednesday and $1.25 billion on Tuesday, according to Trace data.

The high-grade issues improved on Thursday to 97.50 from 96.70 on Wednesday but off of Tuesday’s average of 98.30.

CLO AAAs tightened by roughly 10 basis points on the week, Wells Fargo Securities, LLC analysts said in a note on Friday.

Primary AAAs are trending at Libor plus 155 bps, while tighter at the Libor plus 141 bps average in the secondary market and at Libor plus 130 bps area in the refinancing space.

Meanwhile, the refinancing space has resumed action in July and August after coming to a standstill amid the pandemic’s start in March.

Invesco Senior Secured Management, Inc. refinanced $67 million of class A-1B-2 senior secured fixed-rate notes in a second refinancing of a vintage 2016 broadly syndicated CLO, according to a market notice.

Upland CLO, Ltd./Upland CLO, LLC sold $67 million of class A-1B-2 senior secured fixed-rate notes (expected ratings Aaa//AAA) with a 1.842% coupon.

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