LFRD: Leveraged_Finance_Weekly_25_May_29_May

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When repricings are back, you know it’s a hot market.

B2 credits Colosseum Dental Group, IFCO System, Natra and Stada have all come to reprice their coupons, making the most of “an unexpected market window”, as one portfolio manager put it.
“Macro news and CLO technicals have created a favourable background for borrowers,” they said. “It feels like January, not for the temperatures though.”

The Itraxx Crossover tightened to 260bps as of Friday 29 May, which is the lowest level since February 27 and about 15bps tighter on the week.

The move effectively reversed the Iran war spreads widening. But it’s not just leveraged finance. Reports on a US-Iran ceasefire extension that would see the Strait
of Hormuz re-open led to a fall in oil prices and a decline in yields across government markets this week.