Egan-Jones November 2026 Report Shows Soft CLO Issuance Amid Improving Credit Metrics
Egan-Jones's November 2026 report reveals that Collateralized Loan Obligation (CLO) issuance slowed in October, with 90 deals totaling $36.7 billion—a decrease of approximately 26% to 28% compared to the previous year. Despite lower issuance volumes, deal-level credit metrics remained stable or showed slight improvement, suggesting a potential decrease in overall default risk as weighted average rating scores have trended downward since May 2022. The macroeconomic environment saw shifting trends: while high-yield spreads widened by 14 basis points to 326 basis points, the 5-year Treasury yield fell significantly to 4.71%. The Federal Reserve maintained interest rates at 3.75-4.00% in late October. Egan-Jones also highlighted significant divergence in its credit ratings compared to other agencies, noting gaps of up to six notches on specific tranches.
Topics: Collateralized Loan Obligations Credit Ratings Federal Reserve Fixed Income Interest Rates