Egan-Jones Releases April 2026 CLO Market Summary

NEW YORK, April 14, 2026 /PRNewswire/ -- Egan-Jones released an analysis of the current collateralized loan obligation market, highlighting weaker issuance, low credit spreads, and generally stable to modestly improved credit quality across covered CLOs. This analysis was issued on a non-NRSRO basis.

The report states that CLO issuance remains soft even as credit yields have moved toward recent lows. According to the analysis, CLOs issued in March declined to 67 deals totaling $27.6 billion in 2026 from 106 deals totaling $48.2 billion in March 2025, remaining well below the November 2024 high of 127 deals and $54.6 billion. The commentary suggests that weak issuance may reflect ongoing concerns regarding credit quality.

At the same time, the analysis indicates that key credit indicators have been relatively stable. Egan-Jones notes that weighted average rating scores improved slightly, while the percentage of CCC+ or lower rated CLO assets has been stable to slightly down. The report also observes that both asset coupons and tranche coupons have dipped in recent periods.

As of March 2026, Egan-Jones rated 1,670 CLO deals and compiled deal-level, tranche-level, and asset-level metrics across the market. The report states that the 25th, 50th, and 75th percentiles of weighted average rating score were 3607, 3697, and 3832, respectively. Diversity score percentiles were 59, 66, and 72, while senior tranche subordination percentiles were 32.1%, 33.5%, and 35.4%. For CCC+ or lower rated assets, the corresponding percentiles were 4.9%, 6.5%, and 9.0%.

The tranche analysis further found average subordination levels of 36.1% for senior tranches and 13.4% for mezzanine tranches. Average coupons were 4.9% for senior tranches and 7.0% for mezzanine tranches, while average spreads over 3-month SOFR were 1.3% and 3.4%, respectively. The report also states that Egan-Jones currently tends to have a more positive view of CLO credit quality than other credit rating agencies.

About Egan-Jones Ratings
Egan-Jones, an NRSRO founded in 1995, offers timely and accurate credit ratings and proxy services.

Media Contact:
[email protected]
+1 212 425 0460

SOURCE Egan-Jones Ratings Company