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Data Secondary
Calm April likely to be followed by constructive markets in late spring
As CLOs left behind the volatility of March, primary issuance began to recover
Volatile March gives way to steady April
The CLO market in April 2026 reflected a normalisation in activity after the volatility observed in March, with steady trading volumes, balanced secondary activity and a modest recovery in primary issuance.
TRACE volumes moderated from the prior month’s elevated levels but remained healthy overall, with total volumes settling into a more typical range.
Investment-grade activity continued to dominate overall flows, while high-yield volumes remained supportive, indicating ongoing participation across the capital structure.
Past 12 months FINRA TRACE monthly reported CLO/CDO volumes
Traded US CLO BWIC volumes
Buyers and sellers find point of balance
Secondary market conditions remained orderly. BWIC volumes were stable, and approximately half of posted lists cleared, suggesting a balanced environment where buyers and sellers were able to transact without significant concessions. This points to consistent liquidity and functional dealer intermediation.
Across the capital structure, activity continued to skew toward high quality tranches, with a significant amount of trading around the single-A rating level, though there was still meaningful participation in mezzanine and lower-rated securities.
Selectivity remained a key theme, with investors engaging in spread product but avoiding aggressive risk positioning.
Confidence grows in stability of spreads
In the primary market, April showed signs of recovery. Reset and refinancing activity increased compared to March, indicating improving execution conditions and renewed willingness among managers to optimise liability structures.
While still below peak levels, this rebound suggests growing confidence in spread stability.
Traded BWICs as % of TRACE Volume
Disclaimer: BWIC as a % of TRACE is calculated relative to capital stack. IG is BWIC IG/TRACE IG, HY is BWIC HY/TRACE HY.
US BSL New Issue Spreads Basis
Disclaimer: Long-dated deals are classified as those with a non-call period of 1.5+ years and reinvestment period of 3.5+ years. All statistics are calculated based on the transaction pricing date.
Equilibrium supports pick-up in primary
Spread dynamics remained broadly stable across the stack, with no significant widening or tightening trends. This stability supported the pickup in primary activity and reinforced a sense that the market has found a near-term equilibrium following earlier volatility.
US BSL refi/reset transaction trends
Disclaimer: All statistics are calculated based on the transaction pricing date.
Technicals and fundamentals align
Overall, April 2026 was characterized by normalisation and balance.
Trading volumes stabilised, secondary liquidity remained intact, and primary issuance began to recover. With technicals and fundamentals more aligned, the CLO market appears to be entering a constructive phase heading into late spring.
For further information, contact Jacob Krayn, head of business development, Kopentech: Jacob.Krayn@kopentech.com
Source for all data: Kopentech, TRACE
