The Elm Park CLO reset extended its reinvestment end date by roughly 4.6 years, while its WACC rose by around 39 bps, from 166 bps to 205 bps. As a result of the reset, the existing AAA tranche, which carries a spread of only 82 bps, will be fully redeemed, allowing AAA investors to redeploy proceeds into newer, longer-dated AAA bonds at materially wider spreads — potentially benefiting from the steepness of the current AAA term curve.
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