CIFC prices $497 million CLO; July primary action light; secondary active; AAAs tighten

By Cristal Cody

Tupelo, Miss., July 27 – CIFC Asset Management LLC priced $497 million of notes in the manager’s first new CLO deal of 2020.

CIFC Asset Management priced $497 million of notes due July 15, 2032 in the CIFC Funding 2020-I, Ltd./CIFC Funding 2020-I, LLC offering, according to market sources.

The CLO sold $290 million of class A-1 floating-rate notes at Libor plus 170 bps at the top of the capital stack.

So far in July, $7 billion of broadly syndicated CLOs have priced, Wells Fargo Securities, LLC analysts said in a note on Monday.

Year-to-date volume totals about $42 billion with total supply forecast to end the year at $65 billion.

Meanwhile, the secondary market has been strong so far this year.

Average monthly BWIC volume of mostly high-grade bonds has posted new records this year of nearly $5 billion per month.

Over the past week, AAA/AA CLOs outperformed junior mezzanine tranches, BofA Securities, Inc., analysts said in a research note.

“CLOs maintained recent strong tone, although quality preference remains: AAA/AAs were 5/10 [basis points] tighter while BB/B were 15/25 bps wider,” the BofA analysts said.

AAAs were last seen at Libor plus 160 bps on average last week, tighter than Libor plus 175 bps average in the previous week.

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