By Tracy Chen
Despite the ongoing trade war, global slowdown, and rising geopolitical risks, 2019 may be remembered as the year when credit, emerging markets, and safe-haven assets all printed solid positive returns - except one corner of the credit market: collateralized loan obligation ((CLO)) mezzanine tranches. Is the underperformance of the CLO market a canary in the coal mine for U.S. credit? In this two-part series, we'll look at CLO spreads and then follow up with how this market stacks up against high yield corporate credit.
Decompression of CLO Tranche Spreads
The CLO BB