European CLO Weekly: Global CLOs – where to find value

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European CLO Weekly: Global CLOs – where to find value

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European CLO Weekly

Global CLOs – where to find value

Market update: Surge in resets, more loan repricings 08 June 2026

On the CLO primary, 4 new issue deals, 7 resets, and 2 refis priced last week. YTD gross Structured Finance

new issuance exceeds €26bn now whilst reset/refi volume is above €25bn, including Europe

almost €7bn of refis alone. CLO

On the loan primary, repricing activity continued, with at least 5 transactions

(approximately €3.7bn). This brings loan repricing activity to more than €16bn since the

start of the ceasefire in Iran.

On the secondary, BWIC volume reached around €390mn, with strong triple-A and

single-B supply. Notably, there was no IG mezz auction supply last week. Spreads

finished the week mostly unchanged, with single-Bs a bit softer.

Europe

CLO AAAs – seeking refuge in high quality floaters DustinEuropeanWalpert,CLO StrategistCFA

MLI (UK)

With renewed rates volatility, we view CLO triple-As as a compelling investment +44 20 7996 0982

opportunity, offering scalability, good liquidity, and high quality without rates duration dustin.walpert@bofa.com

risk. In particular, we see value in US BSL CLO triple-As (116 bps over SOFR on average, Alexander Batchvarov, CFA

Int'l Str. Fin. Strategist

106 bps for shorter profiles) as well as Euro CLO new issue deals (in the mid to high 120 BofA Europe (Zurich)

bps area over 3m Euribor, and low to mid 140 bps when hedged to SOFR). +41alexander.batchvarov@bofa.com44 297 7469

The loan market tail has shrunk, but not disappeared USPratik K. Gupta

Loan prices and consequently MVOC ratios have recovered a bit on both sides of the CLO/MBS Strategist BofAS

pond, though the rally has been more pronounced in Europe.