Primary US BSL CLO Pricings vs. Managers’ Rankings (MVOC)
Please see the table below for the list of US BSL CLO managers who have priced a deal in June...
Please see the table below for the list of US BSL CLO managers who have priced a deal in June...
It is evident that the AAA tranches of top-tier deals are still priced wider than historical norms, albeit the gap has been narrowing each week. In contrast, AA tranches are largely in line with historical levels, while single-A to BB tranches are significantly tighter.
Redding Ridge celebrated a significant milestone with an AAA print of 141 bps for its RRE 19 Loan Management deal on 24 May 2024. The deal’s estimated blended WACC (AAA-BB) of around 196-197 bps is the tightest so far this year.
If the loan market continues to grind tighter, with the four-week moving average loan index’s spread migrating into the 360–390 bps range, then AAA prints may tighten to 141-143 bps, using historical trends as a guide.
Golub Capital has become the largest US CLO manager, managing $40.1 billion in US CLO AUM. Blackstone remains the largest EU CLO manager, closely followed by CVC, with Carlyle holding the third position.
It is interesting to note that, even among deals with identical AAA pricing, the all-in WACC can vary to a certain extent for US BSL CLO deals priced since mid-January 2024.