Primary EU CLOs: AAA and AA Remain Wide; Single-B Tranches Lag
June 25, 2025
posted on
The loan market rally has driven broad spread tightening across the CLO stack. Mezzanine tranches responded the most, reflecting their higher leverage and credit sensitivity. In contrast, senior tranches from top-tier CLOs showed a beta below 1.0, indicating a more muted reaction to loan spread moves.
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