CLO Monthly Monitor
CLO Monthly Monitor
CLO performance was positive in December with carry the primary driver of returns and spreads compressed across the capital stack.
We believe credit offers some of the best opportunities in fixed income. The Little Book of Credit explains why.
Request Print Edition
The loan asset class generated positive performance returning 0.64% in December, with coupons the primary driver of performance, and secondary prices ended four months of softness to end modestly higher. Relative to credit peers, loan performance led the way as investment-grade and high-yield corporate bonds generated total returns of -0.20% and +0.57%, respectively.
The CLO tranches delivered positive total returns in December, with the JP Morgan CLOIE Index reporting returns of +0.46% (AAA), +0.52% (AA), +0.54% (A), +0.68% (BBB), and 1.08% (BB). In addition to the positive performance, the year ended on a strong note with CLO issuance hitting $14.9 billion in new issues and roughly 72% dedicated to broadly syndicated loans.