Secondary market volume lighter as CBO/CDO/CLO prices improve; CLO tranches downgraded

By Cristal Cody

Tupelo, Miss., April 14 – After weeks of heavy trading volume in high-grade CBO/CDO/CLO securities, secondary activity subsided on Monday while prices climbed.

Investment-grade secondary market trading volume totaled $242.51 million on Monday, while another $76.28 million of lower-rated issues traded, Trace data shows.

Average prices hit 92 on investment-grade paper and 72.90 for the non-high-grade securities.

In the same session a week ago, $666.03 million of high-grade CBO/CDO/CLO issues traded at an average 86.90 price, while $127.1 million of non-high-grade securities traded at an average 59.10.

In other activity, downgrades continued for broadly syndicated CLOs on Tuesday in response to the economic fallout caused by the coronavirus pandemic.

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