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9 results found Showing page 1 of 1

  • Banks predict record-breaking year ahead
    Consensus figures generated from outlook reports by five banks suggest 2025 will be another strong year for CLO issuance. But last year, their estimates were well below the actual numbers

    6 months ago

  • Slow and steady wins the day
    It’s often thought CLO managers add value to their deals via high volume trading strategies. The data shows this can be true — but on average, top performing CLOs are less actively traded

    6 months ago

  • 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.

    7 months ago

  • 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

    8 months ago

  • European managers struggle to add alpha
    Before the COVID pandemic, European CLOs comfortably outperformed the Morningstar European Euro-Denominated Loan Index. Since then, alpha has declined for many managers

    11 months ago

  • Do defaults predict equity returns?
    At first glance, recently redeemed European CLOs show some sort of correlation between final IRR and the number of defaults in their portfolio. But what other factors affect performance?

    1 year ago

  • How many CLOs will be reset?
    Tightening liability spreads aren’t just driving record new CLO issuance this year — they’re also triggering a wave of resets and refinancings in the US, especially for broadly syndicated CLOs

    1 year ago

  • European CLOs win out against US deals
    Last month, our analysis explored the performance of US CLOs that were previously reset. We found that they delivered higher distributions than deals which weren’t reset, with the exception of the 2017 and 2018 vintages (Creditflux September 2023 — Do resets help CLOs perform better?). This article expands that analysis to the European market, and compares the performance of US BSL and EU CLO equity tranches.

    1 year ago

  • Question your assumptions
    Valuing CLO paper is complicated, and loan prepayments are one of the trickiest parts. When pricing a new issue CLO, the market generally assumes that 15-20% of loans will prepay their principal annually. This prepayment rate is important because it essentially determines the pace at which a CLO’s rated debt is paid off after the reinvestment period, when the CLO pays down its own principal.

    1 year ago

9 results found Showing page 1 of 1

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