US BSL CLOs: Reset Candidates—Low Hanging Fruit in 2024
April 19, 2024
posted on
Interestingly, a significant number of these deals have fixed-rate tranches that are currently 'out of the money,' meaning that these tranches are expensive to refinance. However, the cost savings from other tranches during a reset outweigh the costs of refinancing the fixed-rate tranche. This implies that holders of the fixed-rate tranches would be pleased with more resets, as this would allow them to be prepaid at par.
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