Basic Premium

In contrast, AB CarVal Euro CLO I-C, with a 142 bps AAA print, appeared to offer the best value based on...

OHA Credit Funding 10-R CLO priced its AAA tranche today at 126 bps—the tightest level recorded since early April 2025. Other AAA reset prints over recent days ranged between 128 and 137 bps.

As of July 30, 2025, the latest arbitrage metric for non-short-dated US CLOs stood at approximately 199 bps — the lowest recorded year-to-date.

Among the largest managers, RRAM and Sound Point Capital have the most favourable reinvestment period profiles across their deals.

Last week saw active BB tranche trading, with approximately 68 CLO BB bonds totalling around $220 million in notional listed on BWIC, of which 79% traded.

Among the 19 EU CLO deals priced since then, top-tier (tightest 10%) pricing for AAA, AA, A, BBB, BB, and B tranches was 131.4, 190, 219, 300, 550, and 850 bps, respectively.

As of 23 July 2025, the latest arbitrage metric stood at 236 bps—up from the recent low of 227 bps on 25 June—driven by a lower CLO WACC and wider loan spreads since then.

According to PitchBook LCD, PGIM announced yesterday that it is assessing the optional redemption of Dryden 29 Euro CLO 2013. The deal was originally issued in December 2013, completed a partial refinancing in January 2017, and underwent a reset in January 2018. Its reinvestment period ended in July 2022, approximately three years ago. Since then, the AAA tranche — which carried a spread of 75 bps over EURIBOR — has been fully paid down. As of 30 June 2025, the AA tranche had a remaining factor of 91%.

When the loan market is strong and stable, CLO issuance tends to benefit significantly, as tighter AAA spreads gain momentum...

Overall, CCC/Caa exposures between US BSL and EU CLOs are broadly comparable across multiple vintages.

Among the 15 EU CLO deals priced since 25 June 2025, top-tier (tightest 10%) pricing for AAA, AA, A, BBB, BB, and B tranches was 131.4, 190, 222, 310, 560, and 850 bps, respectively. CIFC European Funding VII and Fidelity Grand Harbour CLO 2025-1 priced their AAA tranches at 131 bps — among the tightest levels recorded.

A sample of 554 EU CLO deals (vintage 2013–2024) is included in this study. Deals with a collateral pool factor below 60% are excluded.

A sample of 1,709 US BSL CLO deals (vintage 2013–2024) is included in this study. Deals with a collateral pool factor below 55% are excluded.

Given strong loan prices, it is an opportune time to fully liquidate seasoned deals that are due for a call.

Primary US BSL CLO Pricing: Assessing Relative Value Across the Capital Stack (July 14, 2025)