TwentyFour AM favours European CLO equity going into 2026
In comparison, US CLO equity faces more challenges related to LMEs and refinancing activity, the asset manager said

North American and European credit defaults to fall next year – S&P Global
Global credit default rates will remain contained next year with North American defaults falling to around 4% 

CLO issuance projected to hit new records in 2026 – KBRA
The ratings agency projects USD 220bn in issuance across US BSL CLOs and private credit CLOs as well as five to six European private credit CLOs next year

Record gross supply but meagre risk/reward ratio for CLOs next year, says JPMorgan in 2026 outlook
The bank is forecasting a new record gross supply figure of half a trillion dollars next year for the US CLO market, but that headline figure belies the ‘recycled’ nature of much of the supply, with new origination expected to decline by around 20%

European speculative-grade corporate default rates to decline in 2026 – Moody’s
The rating agency’s annual deep-dive into the refinancing risks facing EMEA non-financial corporates also found an increased urgency for refinancing as the maturity wall draws closer

UK and France dominate European CLO collateral – Fitch Ratings
One-third of the collateral behind European CLOs is issued by UK and French companies, as Fitch warns of French downgrade risk

Originator “fix” notices soar following risk retention update – Deutsche Bank
Deutsche Bank reports a surge in “fix” notices following 8 August EBA risk retention update

European BB CLO tranches most susceptible to downgrade – S&P Global
Triple-A tranches demonstrate “significant stability,” according to the ratings agency

Credit quality of European CLOs improved since start of year – Fitch
A new report from Fitch Ratings points toward higher quality CLO portfolio credit in the year to date, despite a lower default recovery rate

Private debt market fundraising shows shift to Europe – Goldman Sachs
Private credit market fundraising has been pivoting to Europe, while global defaults remain below historical averages, according to new research from Goldman Sachs

US CLO spreads to widen as uncertainty and tariffs bite – JPMorgan
Higher US tariff levels may lead to CLO spreads widening and pressure US CLO market growth, but new origination has been more resilient than expected, according to JPMorgan analysts in their mid-year CLO outlook report

European CLO resets expected to continue throughout 2025 – Fitch Ratings
A report from the ratings agency indicates as many as 80 European CLOs from 2022 and after could be viable reset candidates this year 

Euro CLOs' largest single B- credits have little direct tariff exposure but face varying indirect pressures – S&P Global
The wave of global tariffs will have little direct impact on the top 'B-' European CLO holdings, but these credits remain vulnerable to secondary effects, according to research from S&P Global

Moody’s forecasts robust economic performance underpinning continued strength in CLOs
The ratings agency’s outlook for 2025 is upbeat about the prospects for both the US and European CLO markets, helped by declining leveraged loan defaults

Deutsche Bank forecasts record new issuance for European CLOs in 2025
Deutsche Bank Research is forecasting a record EUR 50bn in gross new issue CLO supply for the European CLO market in 2025, with net issuance projected to increase to EUR 25bn

European CLOs see jump in triple-C exposure, says Fitch
European CLOs have seen their exposure to assets rated triple-C or below increase sharply, reaching an average of 5.0%

JP Morgan revises CLO spread target upwards as recession fears mount
Off the back of renewed recession fears JP Morgan has revised its end-of-year AAA CLO spread target upwards to 150bps for both the US and Europe

Barclays sees record European CLOs for 2024
Barclays expects a record year for CLO deals in Europe, raising its issuance forecast to EUR 40-45bn in a report released this week

European WAL test language is getting a little looser finds Dealscribe
The latest quarter has seen some loosening of WAL test laguage for European CLOs, according to document analysts Dealscribe

Deutsche Bank and PSL launch index for European CLOs
Deutsche Bank has launched a total-return benchmark index for euro-denominated CLO debt.

Barclays raises 2024 US BSL CLO new issue forecast
Barclays has become the latest bank research desk to increase its 2024 US BSL CLO new issue forecast

European CLO equity distributions keep getting better, US keep getting worse
The latest distributions for post-reinvestment US CLOs show the impact of rapid prepayment rates, but post-reinvestment European CLOs are bucking that trend and seem to be improving with age.

Fresh wave of CLO calls looms as US equity distributions drop
Equity distributions for US CLOs outside their reinvestment period continue to fall as prepayments cut into cashflows

European CLO primary spreads still have a long way to go
Are European CLO spreads in the primary market cheap or expensive? Our latest research shows that while US managers can celebrate AAAs reaching the 150s, in Europe spreads still have a long way to go to reach historical norms.

New research says that CLO arb is better than you think, but still not good enough
New research by Barclays’ Powell Eddins and Pranava Boyidapu suggests that CLO arbitrage is in a better place than many investors think, but that BBs are still more attractive