CLO managers switch strategies as mezz softens

By Owen Sanderson
12 Oct 2020

CLO managers took different approaches to deal with a primary market last week in which prices softened all the way down the capital structure from the tights of late September. One manager, PGIM, even opted not to issue single-B rated notes, using a delayed draw structure instead.

The end of September marked the conclusion of a storming run at the bottom end of the CLO market, with spreads screaming in from nearly 20% in late March to 9% or lower for single-B rated paper more recently.

But that may have prompted some funds to lock ...

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