CLO refis return as spreads tighten

CLO adobe stock 575 375
By Owen Sanderson
12 Jan 2021

Reset and refinancing activity is returning to the European CLO market, after a year of virtual absence, as spreads tightened further in the first week of 2021, especially at the bottom of the capital structure. Partners Group is in the market with a reset of Penta 5, aiming for a sub-100bp print at the top of the capital structure.

The new year has seen CLO spreads tighten further, firming up the recovery from the lows of last spring, and bringing parts of the capital structure within touching distance of pre-Covid price points. For deals that were priced during other challenging periods — Penta 5 was in market ...

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