Secondary CLO trades at record tight spread

By David M Graubard

Wednesday, February 17, 2010

Market sources report seeing a senior CLO tranche trading in the secondary market at one of the tightest spreads seen in the past couple of years

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Comment by: Douglas Watson. Posted 14 years ago [2010-02-17 20:47:10]

This is a friendly reminder for all of us that didn't buy CLO senior exposure back in March/April what a great, low risk opportunity it was! More interesting is when will the rating agencies realize their mass downgrades of AAA/Aaa CLO tranches were an over-reaction, especially if their current spec grade default rate predictions actually come to pass.

Comment by: Anonymous. Posted 14 years ago [2010-02-17 13:34:05]

Good senior structured finance paper has been perfoming excellent, at the end of the day if the underlying collateral is performing as expected, with low default rates, these products will do what it is written on the tin. When this armageddon is over, hopefully we can all sit down and discern the good guys from the bad guys

CLOs

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