Go ‘overweight’ in CLOs next year, says BofA

Trading stock interest rate index adobe stock 230x150 AS
By Paola Aurisicchio
04 Dec 2019

Market participants should take advantage of any spread widening in CLOs between now and year end, said Bank of America research analysts, as they predict that bonds throughout the capital stack will rally in 2020.

BofA is recommending going overweight CLOs next year, and said it expects 10bp of spread tightening at the triple-A level and 100bp-300bp of tightening in double and single-Bs.

“On the back of positive tailwinds in the broader economy, rates and loan market, we are going overweight on CLOs ...

Please take a trial or subscribe to access this content.

Contact our subscriptions team to discuss your access: subs@globalcapital.com

Or sign up for a trial to gain full access to the entire site for a limited period.

Free Trial

Corporate access

To discuss GlobalCapital access for your entire department or company please contact our subscriptions sales team at: subs@globalcapital.com or find out more online here.