Bridgepoint CLO IV Reset: A New Benchmark as BB Spreads Tighten

Since mid-July 2022, when 3M EURIBOR moved into positive territory and began its upward trajectory, the EU CLO primary and reset markets have made notable strides. In late July 2022, published discount margins indicated that the pricing differential between AAA and BB tranches was around 800-900 bps. By the end of 2023, this differential had narrowed…