Senior bonds in focus for US new issue CLOs
PGIM and Octagon were active in the US CLO market on Monday and Tuesday this week, as new CLO formation is said to be building momentum despite the difficulty of attracting equity investors given the squeeze on returns at the bottom of the structure.
PGIM’s $609.9m deal was arranged by BNP Paribas. The $386.4m triple-A notes were sold at 122bp over three month Libor. At the junior end of the capital stack the $30m single-B notes carried a discount margin of 640bp.“Triple-A pricing continues to tighten, and CLO formation remains busy,” ...
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