Avoca looks to break spread boundary with euro CLO

tight pricing
By Tom Porter
28 Jul 2014

Avoca Capital is looking to break through a recent 135bp over Euribor lower limit for senior European CLO notes its second euro denominated deal of the year, which some bankers see as the start of a predicted primary market tightening for the asset class.

Senior CLO spreads in the primary market have remained stubbornly in the 135bp-140bp range for the vast majority of this year, but more recently a number of CLO investors and analysts have been predicting a material tightening in the second half of 2014 against similarly rated securitizations.

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