Clarion says AI-related leveraged loans price wide, opening higher-spread opportunities for CLOs
HYG•AI-related leveraged loans are pricing wide
Clarion Capital Partners flagged a surge in AI-related leveraged loan issuance, reaching $8 billion year-to-date through August 2026.
Data center loans priced 100 to 300 basis points wider than the median new-issue loan spread, despite ratings typically BB- or higher.
CoreWeave’s $2.6 billion first-lien loan priced at SOFR + 5.5% at 97, implying over 10% yield-to-maturity.
CLO managers use higher-spread loans to lift income
Managers are using higher-spread AI infrastructure loans to rebuild CLO portfolio income; the average data center spread held in CLOs is 326 basis points over SOFR.
Most AI-related infrastructure loans held by CLOs trade near par; about 92% are priced at 98 or higher, supporting NAV.
