High-grade CBO/CDO/CLO secondary volume hits $3.19 billion; CLO prices decline

By Cristal Cody

Tupelo, Miss., March 24 – High-grade CBO/CDO/CLO secondary market volume ballooned to $3.19 billion on Tuesday as the coronavirus fallout continued to pressure CLO tranches.

The CBO/CDO/CLO securities traded at an average 80.70 price over the session, down from the 86-89 area seen last week, according to Trace data.

Further down the capital structure, $50.73 million of non-high-grade CBO/CDO/CLO paper traded on Tuesday at an average price of 50.80.

Last week, lower-rated securities traded at 64 to 68 price averages.

Secondary market volume was heavy last week with $1 billion-plus volume in back-to-back sessions.

The heavy secondary supply over the past two weeks has pressured levels with AAAs trading with handles in the mid 80s to low 90s area, according to a Wells Fargo Securities LLC report.

In other CLO market activity, on Tuesday, OPAL BSL LLC closed on its $559.7 million broadly syndicated Golub Capital Partners CLO 48(B) Ltd./Golub Capital Partners CLO 48(B) LLC deal.

The CLO sold $341 million of class A-1 floating-rate notes at Libor plus 131 basis points.

Also, Marble Point CLO Management LLC closed Tuesday on its $400 million of 13-year notes priced in the Marble Point CLO XVII, Ltd./Marble Point CLO XVII LLC broadly syndicated transaction.

The CLO has a weighted average cost of debt of Libor plus 187 bps.

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