CLO Spreads Set to End 2018 on a Weak Note Amid Record Sales
Photographer: Michael Nagle/Bloomberg
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Spreads on U.S. collateralized loan obligations have been steadily widening and are poised to end the year notably weaker than where they started.
The average spread for AAA rated standard new broadly syndicated loan CLOs widened to 122 basis points over Libor in November and has remained in that range this month, according to data compiled by Bloomberg News. This compares with levels of about 105 basis points in January and a low of under 100 basis points achieved in March.