Egan-Jones Examines October CLO Issuance, Credit Metrics and Rating Differences
NEW YORK, Nov. 12, 2026
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Egan-Jones Examines October CLO Issuance, Credit Metrics and Rating Differences
PR Newswire
NEW YORK, Nov. 12, 2026
NEW YORK, Nov. 12, 2026 /PRNewswire/ — Egan-Jones released its November 2026 report on collateralized loan obligations (CLOs), finding that issuance remained soft in October while deal-level credit metrics held steady to slightly better. The report also compares Egan-Jones ratings with those of other agencies and shows where its views differ most.
October CLO issuance totaled 90 deals ($36.7B), down 25.6% by count and 27.8% by volume from a year earlier, and remained below the November 2024 peak. The ICE BofA US High Yield Index option-adjusted spread widened 14 basis points over the month to 326 basis points, still below the April 2025 high of 461 basis points.
Rates moved the other way. The 5-year Treasury yield fell 38 basis points to 4.71%, retreating from September’s 2026 high of 5.09%. On October 28, the Federal Reserve held rates at 3.75-4.00%, with two officials dissenting in favor of another 25 basis point increase.
Within that environment, Egan-Jones deal metrics held steady to slightly better. The weighted average rating score, where a lower number indicates stronger credit, has improved over the past year, and its mean has decreased since May 2022, which the report says indicates overall default risk might be decreasing. The share of assets rated CCC+ or lower has been stable to slightly lower. Asset and tranche coupons remain below year-ago levels, but both turned up in the latest month.
As of October 2026, Egan-Jones rated 1,557 CLO deals. Its views on CLO credit quality differ from other agencies, and the report’s comparison covers 20 deals, ten where Egan-Jones is higher and ten where it is lower. The widest single-tranche gap in each deal reaches six notches in both directions, for example a Class D tranche rated AAA by Egan-Jones against A- from a peer. All Egan-Jones ratings in the report are non-NRSRO ratings.
The report also includes a sample rating report on AGL CLO 20, whose largest exposure is Banking, Finance, Insurance & Real Estate at 13.7%. Together, the findings show deal-level credit metrics holding steady to slightly better even as issuance trails year-ago levels, and they identify where Egan-Jones’ ratings diverge most from those of other agencies.
About Egan-Jones Ratings
Egan-Jones, an NRSRO founded in 1995, offers timely and accurate credit ratings and proxy services.
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SOURCE Egan-Jones Ratings Co.
