CLO Special Topics: July Payment and Performance Update

Research evidence excerpt

CLO Special Topics: July Payment and Performance Update

Global Markets Research

23 July 2026CLO Special Topics

Securitized Products - North America

Research Analysts

July Payment and Performance Update US Securitized Products

Market update Paul Nikodem - NSI paul.nikodem@nomura.com

Primary and secondary CLO: Primary CLO AAA spreads have widened recently, with +1 212 667 2130

top-tier AAAs pricing around 123bp, while secondary AAA spreads were mostly Joseph Gais - NSI

unchanged on the week. Secondary spreads for BBBs widened by about 15bp week-over- joseph.gais@nomura.com

week. Month-to-date new issuance volumes ($5.8bn) are higher than the same period last +1 212 667 2028

month ($4.6bn), whereas refi/reset volumes ($19bn) have declined by $1bn. We expect

refi/reset supply to continue to ease throughout H2, while new BSL CLO issuance should

pick up slightly to $70bn in H2. Meanwhile, CLO AAA ETF inflows totaled $470mn thus far

this week—YTD AAA ETF inflows now total $12bn and account for two-thirds of net AAA

issuance this year. We expect $130bn/$130bn/$100bn of BSL new issue/reset/refi

issuance in 2026.

Fig. 1: CLO pricing comparison Fig. 2: Net weekly CLO AAA and mezz ETF flows

Primary spreads based on recent pricings

AAA AA A BBB BB

Secondary Spreads (bp) 105-135 145-170 170-200 255-360 490-1200

Secondary - $px 99+ 99+ 99+ 95-100+ 80-100+

Secondary - Median MVOC 150% 127% 117% 109% 105%

Primary - Top tier 5/2 123 145 175 255 525

Historical Spreads (bp, vs SOFR)

Primary (top Early 2025 Tight 110 140 165 240 440

tier 5/2) Late Nov. 2021 139 190 220 325 650

Early 2018 Tight 118 155 195 275 520

Secondary Late Nov. 2021 130-155 185-210 215-250 345-420 700-875

Source: Bloomberg, Nomura

Loan market update: New institutional loan issuance has totaled $4.4bn thus far this