Short CLOs here to stay despite tightening spreads

By Paola Aurisicchio
16 Feb 2021

AGL Credit Management and Palmer Square Capital, among the most active managers in 2020, have returned to the market with new issue deal with five year-reinvestment periods, as tightening pricing lets managers term out their structures. But shorter deals continue to be attractive, especially for mezz buyers.

AGL Credit, the asset manager backed by the Abu Dhabi Investment Authority, priced a $458m CLO arranged by JP Morgan last Friday with triple-A notes paying 113bp over three month Libor. The deal – CLO X – printed a $31m class D tranche, rated Baa3 by Moody's, at 290bp ...

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