CBO/CDO/CLO paper improves as secondary trading volume declines; market action light

By Cristal Cody

Tupelo, Miss., April 8 – Securitized secondary market supply declined on Tuesday, while prices improved from Monday’s session.

Secondary trading volume on Tuesday included $509.05 million of high-grade CBO/CDO/CLO paper and $126.21 million of lower-rated issues, according to Trace data.

Average prices for high-grade CBO/CDO/CLO paper climbed to 90.40 on Tuesday from 86.90 on Monday.

Lower-rated CBO/CDO/CLO securities also improved to a 61.10 average on Tuesday from 59.10 at the start of the week.

During Monday’s session, $666.03 million of investment-grade CBO/CDO/CLO securities and $127.1 million of non-high-grade CBO/CDO/CLO issues were traded.

Meanwhile, overall market activity remains light with just one reported deal priced since mid-May.

In action on Wednesday, an issuer announced it has requested that the class A-D notes from a vintage 2006 CLO be delisted from trading on the Euronext Dublin main market starting Thursday.

The Prospero CLO II BV notes due 2022 were issued on Nov. 30, 2006. The CLO’s class E notes were delisted in December.

The CLO is backed by a portfolio of mostly high-yield senior secured loans and is managed by Alcentra NY, LLC.

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