Slight improvement in average loan and bond spreads from two weeks ago, when loans were 857 bps and bonds averaged 1740 bps. These have tightened to 839 bps and 1574 bps respectively over the last week. Senior-secured negative basis capital structure opportunities have disappeared, compared to several such arbitrage opps available in February 19. While equity markets have continued to ramp up from mid March, credit has moved only marginally tighter.
Notable movers tighter include TRW in both loans and bonds as well as Aeroflex. Most other names had nominal moves tighter. Lastly, the only negative basis (same as we highlighted two weeks ago) in Alliance Imaging, has converged almost to parity at 15 bps, a 55bps convergence from the last loan-bond update.
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