CSAM, Neuberger Berman, Crestline Denali price CLOs; secondary CLO spreads firm

By Cristal Cody

Tupelo, Miss., Jan. 29 – New CLOs are starting to price in the primary market after managers refinanced several vintage CLOs in January.

Credit Suisse Asset Management, LLC tapped the primary market with a new $811.1 million CLO.

Neuberger Berman Loan Advisers LLC sold $510.8 million of notes in its transaction.

Crestline Denali Capital, LP came with a $409.6 million CLO in one of the first new transactions of the year.

More than $2 billion of new CLOs have priced year to date, while more than $9 billion of vintage CLOs have been refinanced and/or reset, according to a BofA Merrill Lynch research note on Monday.

New CLO AAAs tightened to as much as Libor plus 103 basis points this month for a new post-financial crisis print, BofA Merrill Lynch analysts said in a separate CLO research note on Friday.

“We expect new-issue deals to continue testing new tights in future weeks,” the analysts said.

Spreads also tightened across the capital structure in the secondary market, according to the note.

“The Street also seemed active in adding to their inventory given strong overall demand for U.S. CLOs,” the analysts said. “Having somewhat lagged the recent tightening, single-B spreads attracted some fast-money interest this week.”

CLO AAAs were 2 bps tighter going out on Friday at Libor plus 93 bps.

© 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.