Spreads on triple-A CLOs tighten as US election nears

By Paola Aurisicchio
29 Sep 2020

Spreads on triple-A CLO bonds have tightened to a new Covid-era low, with Oak Hill Advisors pricing a $458m deal at 125bp over three month Libor.

The CLO, arranged by JP Morgan, includes $310m of senior notes and has a three year reinvestment period.

Spreads on triple-A CLO bonds continue to tighten and have settled into the 125bp-130bp range established before the outbreak. The quick recovery in the past two months brought major banks ...

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