CLO mezz rally winding down, says JPM
The rally in the price of mezzanine CLO paper has run out of steam after a surprising run that saw spreads on the bonds tighten by 75bp-100bp since October, according to analysts at JP Morgan writing this week.
“CLO BBs with clean portfolios was one of our top trades in our November outlook. CLO spreads have followed credit tighter, outperforming even our own expectations,” the analysts wrote. “We think this rally has mostly run its course and is now heading into a carry trade.”The ...
Please take a trial or subscribe to access this content.
Contact our subscriptions team to discuss your access: email@example.com