European CLO Weekly: Strong CLO creation, heavy loan repricing activity

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European CLO Weekly: Strong CLO creation, heavy loan repricing activity

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European CLO Weekly

Strong CLO creation, heavy loan repricing

activity

Market update: Surge in issuance & another debut 29 June 2026

On the CLO primary, 8 deals priced in total, including 7 BSL transactions and 1 MM deal Structured Finance

by Golub, marking the 4th debut manager in Europe this year so far. In addition, 3 resets Europe

and 1 refi priced. CLO

YTD gross new issuance is at €31bn, the highest H1 volume on record (tied with 2025).

Meanwhile, reset/refi volume exceeds €29bn YTD.

On the secondary, BWIC volume decreased to €290mn vs. €550mn the week prior, with

strong triple-A and single-B supply. Spreads finished the week unchanged.

Broad manager participation despite weak arbitrage

Dustin Walpert, CFA

Around 75% of existing CLO managers have already issued one deal this year. In European CLO Strategist

addition, 4 new managers – Elmwood, Diameter, and Muzinich on the BSL side and MLI (UK) +44 20 7996 0982

Golub on the MM side – have entered the European CLO market YTD. dustin.walpert@bofa.com

Alexander Batchvarov, CFA

However, CLO equity arbitrage remains under pressure given a tight loan market. YTD Int'l Str. Fin. Strategist

loan repricing volume exceeds €67bn already, stemming mainly from 2 waves, first in BofA Europe (Zurich) +41 44 297 7469

January/February and then the current wave that started in May. alexander.batchvarov@bofa.com

Tight spreads for most of the capital structure

CLO new issue triple-A spreads are now in the mid to high 120 bps range for the most Common Acronyms (see Appendix)

part, with a tilt towards the lower end of that range last week. Meanwhile, IG mezz

spreads have tightened considerably, with triple-Bs now oftentimes pricing in the 270-