New York Life Sells CLO With Lowest Yield Spread on AAAs of 2014
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A money-management unit of New York Life Insurance Co. issued a $412.5 million collateralized loan obligation that pays the lowest yield spread of the year on the most senior piece of the fund, according to data compiled by Bloomberg.
The deal’s $256 million Aaa rated slice yielded 140 basis points more than the London interbank offered rate, according to the data. The average spread on AAA pieces was 150 basis points in May, according to Wells Fargo & Co. At the top of the market in 2007, AAAs yielded as little as 23 basis points, or 0.23 percentage point, over the benchmark.