How to evaluate CLO managers
Portfolio manager incentives and MVOC volatility are crucial factors for CLO equity investors, says Dagmara Michalczuk

CLO secondary dynamics – January 2026
January trading activity suggested a market that is stabilising rather than accelerating, with consistent liquidity, tighter spreads, and improving sentiment across the capital structure

Fund performance – December 2025
All categories end 2025 positively as Pictet Alt takes 12-month crown

Private credit CLOs scaled new heights in 2025
CHART: Mid-market CLOs enjoyed their biggest issuance year ever, powered by a high number of pricings and underpinned by an especially prolific opening quarter

CLO equity has an 11-year track record of consistent mid-to-high teen returns
Distributions by MM CLOs are based on underlying loan performance, not market sentiment

CLO secondary dynamics – November 2025
The CLO market in November 2025 exhibited steady but shifting activity across trading and spreads, reflecting a market that remained active despite seasonal slowdowns and mixed sentiment

Fund performance – October 2025
Corporate distressed rises again but outliers drag down CLOs

CLO credit quality improving – Fitch
CLO performance remained stable in November, with few changes made to Fitch’s ratings

Fund performance – September 2025
CLO funds struggle while other categories stay positive

Fund performance – August 2025
Arena takes turn in the lead as mix of funds make top 10

Hot August sets tone for rest of 2025
Some European CLO managers still get time off in summer, but the days when the whole market shut down are long gone. So, in a busy year for CLOs, this August was the second busiest ever

Fund performance – July 2025
CLO funds dominate in early summer with clean sweep of top 10

Fund performance – June 2025
Emerging markets lead as CLOs and credit multi- strategy returns dip

Opportunity in CLO double B tranches
Given their low default rates, double B CLO tranches offer much higher coupons than might be expected — suggesting they offer some of the best risk/return trade-offs in all of fixed income

Fund performance
Entering the final three months of the year, CLO funds took a clean sweep of the top 10 spots in the Creditflux tables. October was strong overall, as over 85% of funds listed made positive returns

Credit hedge funds
Credit hedge fund perfomance

Triple C assets and capital preservation
In the US and Europe, better performing CLOs tend to hold fewer triple C assets. But even so, a third of top performing CLOs in the US have more than 6% of their assets in the triple C bucket.

Fund performance - Emerging markets index takes top spot in solid month for credit overall
September was another positive month for credit funds. In almost every category our indices were positive, and four strategies showed solid average returns of 1% or more. 

Credit hedge funds
Credit hedge fund performance data for September YTD 

Euro triple-Cs buckets are trending up but investors remain sanguine
The European CLO market has had a number of leveraged loan ratings downgrades, but investors say they’ve mostly been idiosyncratic events and the situation remains manageable

Static deals stand out in Europe
European CLO equity in redeemed deals has delivered excellent returns. But managers might be surprised to discover that static deals are the region’s stars

Fund performance
August returns were largely positive for credit hedge funds, as 88% of those listed in the Creditflux database reached into the black

Credit hedge funds
Credit hedge fund performance tables as of the end of August 2024

CLO strategies outperform again
In 2023, our index of funds investing in CLO tranches and equity returned 22.9%. In the first six months of this year, the index reached 9.9%, as these funds again delivered outstanding results

Credit hedge funds
Our credit hedge fund performance tables for June