CLO Monthly Monitor
CLO performance was mixed in April as carry drove positive total return for higher-quality liabilities, but spreads widened across all tranches in the capital stack.
CLO Monthly Monitor
CLO performance was mixed in April as carry drove positive total return for higher-quality liabilities, but spreads widened across all tranches in the capital stack.
Contents
New CLO origination was $15.4 billion across 33 deals despite the market volatility, taking the $63.9 billion year-to-date total modestly off of the 2024 record-setting pace.
First-quarter earnings for loan issuers have been a study in contrasts, 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 compared to 18% in the third quarter and 2024. Tariffs and economic growth concerns can be seen in specific sectors such as consumer durables and chemicals.
New CLO origination was $15.4 billion across 33 deals despite the market volatility, taking the $63.9 billion year-to-date total modestly off of the 2024 record-setting pace.
First-quarter earnings for loan issuers have been a study in contrasts, 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 compared to 18% in the third quarter and 2024. Tariffs and economic growth concerns can be seen in specific sectors such as consumer durables and chemicals.