Primary US BSL CLO Pricing: Assessing Relative Value Across the Capital Stack (July 14, 2025)
Primary US BSL CLO Pricing: Assessing Relative Value Across the Capital Stack (July 14, 2025)
Primary US BSL CLO Pricing: Assessing Relative Value Across the Capital Stack (July 14, 2025)
Primary US BSL CLO Pricing: Assessing Relative Value Across the Capital Stack (July 8, 2025)
US BSL CLO AAA tranches are currently pricing cheaply relative to their year-to-date averages.
Relative to their year-to-date averages, EU CLO AAA, AA, BB, and single-B tranches are currently screening as cheap.
The loan index used for this analysis is the Morningstar Euro-denominated Leveraged Loan Index.
Loan spreads have returned to levels last seen in mid-March, as shown in the final column. AAA spreads remain wide, with the four-week average loan spread still elevated at 446 bps as of 30 May. That said, the four-week average is expected to fall below 440 bps by 6 June, even if loan spreads remain broadly unchanged over the coming week. If historical patterns are a reliable guide, AAA spreads are likely to tighten to levels seen in early April in the near future.
