Junior CLO debt surges above par in secondary market
Investor thirst for yield has pushed the price of the riskiest pieces of CLO debt well above par, but market participants say that many investors are underestimating call risk as they hunt for value.
The price of CLO debt in the secondary market is now above par across most of the capital stack, meaning buying secondary paper is essentially a carry trade, according to analysts from Bank of America Merrill Lynch on Tuesday.An investor speaking with GlobalCapital said that double-B rated ...
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