Squeezing out all the tiers
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Squeezing out all the tiers

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◆ Triple-A rated US CLO spreads close in on140bp ◆ CLO manager tiering barely visible ◆ Gearing up for Barcelona

This week's episode of Another Fine Mezz had a distinctly American flavour to it, owing to CLO reporter, Victoria Thiele's trip to New York and the rapid tightening in the US CLO market.

European securitization reporter, George Smith, was away taking a well-earned rest after his gigantic contribution for GlobalCapital's Global ABS special report (which delegates can get their hands on from June 4).

The US CLO market has tightened dramatically in the last couple of weeks. Where once 150bp over Sofr on the triple-As was considered a hard limit for investors, some managers are close to printing at 140bp and many expect further tightening towards 135bp.

Meanwhile, the squeeze on spreads has eroded the tiering premium to all but a couple of basis points for the tier two and three managers, such is the demand for CLO paper.

Finally, the Another Fine Mezz team is delighted to announce that they have twisted the arm of Invisso just enough to get the chance to record the podcast live from Global ABS in Barcelona. The podcast is scheduled to go live at 2.10pm CET in the exhibit hall, where all are welcome to enjoy the usual ramblings over lunch.

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