Tepid CLO market rallies on vaccine news

Vaccine_AdobeStock_575x375_24Nov20
By Tom Brown
24 Nov 2020

A wider market rally boosted by positive vaccine news from Pfizer, Moderna and the University of Oxford has begun feeding into the European CLO market, tightening secondary spreads while primary markets remain more sluggish.

At the bottom of the capital structure, single-B notes are approximately 125bp tighter since Pfzier released its vaccine update that showed 90% efficacy on November 20. Double Bs are around 75bp tighter, with triple-Bs 40bp-50bp tighter.

"The rally feels more street driven than accounts, BWIC volumes have been quite ...

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