Excess Spread — Arms race, can-kicking, winning the worst prize
- Owen Sanderson
Chicken, meet egg
So it’s August and boring and lots of people are still out, but enquiring minds are turning to September supply. Unfortunately the classic CLO-loan dynamic is at play…there’s plenty of CLO transactions that want to come (we hear 15 or so), but CLO managers want to know that there’s going to be adequate loan liquidity, and preferably some primary supply, before they rush to print. Who’s willing to jump first?