Investors push back on tight CLO mezz debt

Dollar fotolia
By Sam Kerr
22 Mar 2017

Buyers of CLO mezzanine debt are pushing back against the rapid spread compression seen since since the start of the year, with activity over the past month showing a slowdown in the pace of tightening.

According to data from Wells Fargo, new issue triple-B spreads are hovering near a tight of 340bp over Libor, five basis points tighter than four weeks ago. While still showing that spreads are tightening, the pace has slowed somewhat. 

Tightening of triple-B debt over the last month has ...

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