Palmer Square CLO 2025-1 Establishes New Benchmark as BB Spreads Tighten

The recent pricing of Palmer Square CLO 2025-1 marks a fresh milestone in the 2.0 CLO market. The AAA tranche was priced at 116 bps, while the BB tranche was set at 450 bps. Among non-short-dated deals priced since 2012, the reported DM differential between the AAA and BB tranches in this deal reached a…