CLO Monthly Monitor
CLO performance was strong across the board in May as rallying prices drove total return, and spreads compressed across all tranches in the capital stack.
CLO Monthly Monitor
CLO performance was strong across the board in May as rallying prices drove total return, and spreads compressed across all tranches in the capital stack.
Contents
CLO tranches delivered positive total returns in May, with the JP Morgan CLOIE Index reporting returns of 0.73% (AAA), 1.00% (AA), 1.36% (A), 1.60% (BBB), and 3.02% (BB).
First-quarter earnings for loan issuers were mixed, with strong earnings reports paired with dour outlooks. Nearly twice as many high-yield issuers beat on first-quarter EBITDA expectations, but this was coupled with nearly 44% of companies experiencing inflationary pressures. In light of tariffs and economic growth concerns, it comes as no surprise that sectors such as chemicals, consumer, and housing provided negative guidance for the months ahead.
CLO tranches delivered positive total returns in May, with the JP Morgan CLOIE Index reporting returns of 0.73% (AAA), 1.00% (AA), 1.36% (A), 1.60% (BBB), and 3.02% (BB).
First-quarter earnings for loan issuers were mixed, with strong earnings reports paired with dour outlooks. Nearly twice as many high-yield issuers beat on first-quarter EBITDA expectations, but this was coupled with nearly 44% of companies experiencing inflationary pressures. In light of tariffs and economic growth concerns, it comes as no surprise that sectors such as chemicals, consumer, and housing provided negative guidance for the months ahead.