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Contego CLO XII Reset Delivers a AAA Print Tighter Than It Looks

The recent pricing of the Contego CLO XII reset extended its reinvestment end date by roughly 1.5 years and reduced its WACC by around 72 bps, from 282 bps to 210 bps, more than offsetting the collateral spread compression of approximately 43 bps that the deal has experienced since its first reporting date in February 2024.

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