CLOs reprice as software and geopolitics test sentiment
Collateralised Loan Obligation (CLO) markets have repriced meaningfully over the past few weeks. Spreads on AAA notes have widened by around 10bp from the tights of early February, while BB spreads have moved 150-200bp wider in both European and US CLOs. The widening has been more pronounced in European B notes and, importantly, dispersion across managers has increased again.
