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With the slow pace of new issuance at the start of the year, CLO investors at the SFIG Vegas conference seemed resigned to receiving smaller risk premiums.
In an electronic poll at a CLO session, nearly half (48.9%) saw triple-A spreads tightening to Libor plus 125 basis points (or lower).
The poll was taken shortly after PineBridge Investments priced the senior tranche of a collateralized loan obligation at the lowest level of the year, at a spread 128 basis points over Libor.
The attendees' expectations were even wider than that of...