CLO and leveraged loan spreads are expected to remain at or near tights as credit fundamentals in the corporate sector remain robust against a backdrop of deterioration within the U.S. housing market, Bear Stearns analysts wrote last week.

Investor demand for leveraged loan credit has resulted in loosened credit standards, according to some market participants. Even so, the persistently tight leveraged loan spreads have led a number of CLO managers to pick up higher yielding assets, such as middle-market loans. But while there are some cracks in the theme of robust corporate credit performance, a number of analysts, including those at Bear Stearns, feel that the "current corporate credit cycle still has some time to play out."

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.