European ABS Chartbook: Highlights of the week

Research evidence excerpt

European ABS Chartbook: Highlights of the week

June 29, 2026 10:20 AM GMT

RESEARCH DATA

M O R G A N S T A N L E Y R E S E A R C HEuropean ABS Chartbook Europe

Highlights of the week

• Much like the temperatures in UK/EU last week, primary markets were rather hot with €5.1bln pricing across a range of transactions. Six Morgan Stanley & Co. International plc+

new issue CLOs added €2.5bln to CLO issuance, which at this point is similar to the volumes seen over the same period last year.

Vasundhara Goel

Weighted-average cost of the stack is around 189bp currently with AAAs last week in the 124-127bp range. Golub got added to the list of

Strategist

private credit CLO issuers last week with its debut European PC deal with AAA (euro) at +150bp and the sterling AAA at +167bp. The CLO Vasundhara.Goel@morganstanley.com

is backed by 49 assets and 23% of the collateral is software according to KBRA’s presale on the deal. Away from CLOs, the issuance mix +44 20 7677 0693

was diverse and accompanied by upsizes and strong over-subscription levels. Overall, YTD issuance stands at €92bln including new issue

CLOs. Another €29bln of CLO reset/refi activity has gone through the gates so far this year.

• Software was back in the headlines last week and the recovery seen in software/services loans since March appeared to have tempered Recent Reports

slightly with loans lower by 0.5-1 point last week. Software exposures in European CLOs continue to be around 10% on average, but we

Global CLOs: Manager Factbook – Junehave noted a decline in the 2026 vintage deals with an average 8.4% exposure in newly minted transactions from this year.

2026 (New Version) (26 Jun 2026)

• Spreads stayed firm generally, although non-IG mezz in CLOs saw some softening on the back of lower loan prices.