Secondary prices slide amid low bids for CLO single As

By David M Graubard

Friday, January 23, 2009

Traders are expecting a steep drop in CLO prices in first quarter of this quarter, and that is reflected in the low bids at yesterday's auction of single A and double A positions

Subscriber-only article

This article is available only to Creditflux subscribers and free trial users within 30 days of publication.

Already a subscriber? Not logged in? Click here to login.

If you have not already done so,
you may request a FREE TRIAL by clicking here

This trial will give you:
  • 4-weeks' free online access to our
    most recent subscriber-only articles
  • Daily breaking news alert sent by email
  • A print copy of Creditflux

If you currently have a free trial, you will see this message when you try to view articles older than 30 days.

Comment by: Anonymous. Posted 15 years ago [2009-01-23 16:08:03]

Triple A CLO tranches will attract consistently higher bids than mezzanine tranches, higher than can be explained by credit support alone, as collateral deterioration shortens their average lives due to the triple-C bucket or OC triggers.

CLOs

more stories...