Sound Point Meridian Capital initiated with a Buy at Clear Street

Clear Street analyst Mickey Schleien initiated coverage of Sound Point Meridian Capital (SPMC) with a Buy rating and $20 price target Near-term challenges persist as tight loan spreads pressure collateralized loan obligation equity yields and valuations, contributing to net asset value compression since the IPO, the analyst tells investors in a research note. The firm added, however, that Sound Point’s institutional backing, proactive portfolio management, and strategic CLO refinancing activities position it to benefit from potential loan market rebalancing in 2026 as M&A potentially recovers.