CLOs take the stage at Abu Dhabi Finance Week
Investors turn to CLOs amid lower returns in private credit; private credit managers anticipate active deployment environment in 2026

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

Bank of America Research projects record year for US CLO issuance
The bank forecasts some USD 600bn in deals expected to hit the market, more than 19% ahead of this year’s issuance total, while it also sees at least eight debut managers coming to market in the US in 2026

Accumulation of long-dated assets in EMEA CLOs poses risk – Fitch
There is increased pressure to sell long-dated assets given the shortening tail periods in EMEA CLOs, the ratings agency said

CLO dispersion set to increase in 2026 – BNP Paribas
Next year is likely to see increasing dispersion in credit performance off the back of a series of idiosyncratic credit events, BNP Paribas has forecast in its 2026 CLO outlook

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

BoE highlights weaknesses in CLO market following First Brands, Tricolor
The central bank will soon begin its stress test of private markets, amid concerns around weaknesses in higher-risk credit solutions

European private credit CLOs ramp up, with Pemberton, Ares readying new deals
Pemberton to join Ares with new issues next year, while Barings looks at a reset of its initial static deal

Signs of stress emerging in loan market since start of Q4 – Kartesia
EXCLUSIVE: Spreads on triple C-rated assets have increased by 62bps since the start of October, Kartesia’s research has found

Goldman Sachs arranges new Euro prints for Neuberger Berman and Investcorp
Neuberger Berman Euro CLO 8 was on the smaller size of new issues, at EUR 306.5m, while Investcorp’s Harvest CLO XXXVIII weighed in at EUR 407.2m

Switzerland's LGT prices second CLO
Barclays was the sole arranger on the EUR 406m deal, which LGT said attracted orders from both existing and new investors

Park Square appoints its first CLO portfolio manager in Europe as it prepares to enter the market
The private credit firm is among a growing cohort of managers eyeing the European CLO market

Golub hires Fair Oaks’ CLO PM, signalling expansion into European market
Creditflux reported on Wednesday he was leaving his current role at Fair Oaks at the end of November; Wallace's new position will encompass broadly-syndicated CLOs as part of a remit that extends across BSL and fixed income

Eurazeo to launch European CLO business, but timing is key
EXCLUSIVE: The French asset manager has been considering a CLO launch for some time and may enter the market next year with a BSL-backed deal

Fair Oaks CLO PM to depart for new shop
EXCLUSIVE: Fair Oaks Capital's Tyler Wallace is set to depart at the end of the month, with Remi Nedelec replacing him as portfolio manager for the firm's European CLO platform

Carlyle, Barings market new European CLOs
The two managers are marketing new European CLOs with similar sizings and spreads – but Carlyle’s deal is set to print as a standard-duration five-year CLO, while Barings is offering a short-duration three-year reinvestment period

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 CLO IG returns reach 3.2% in the YTD - BofA
CLO triple As have returned 3.2% in the year to date, representing the third best year for the segment in the CLO 2.0 market

Are Investors Mispricing “Tail” Volatility in triple A CLOs? - Fair Oaks
GUEST ANALYSIS: Investors may be overestimating the volatility and risk of triple A CLOs, according to Fair Oaks Capital

M&A and LBO activity set to accelerate next year – Moody’s 2026 levfin outlook
The increase in dealmaking activity is set to be driven by LBOs, due to rising pressure for PE shops to deploy a record level of dry powder

Five Arrows and Onex print 2023-vintage Euro resets
The two-year-old deals issued via Jefferies

CLO fundamentals expected to weaken through 2026 – Deutsche Bank
CLO credit fundamentals are expected to weaken through next year due to lower loan prices and increased ratings downgrades, creating a bifurcated market, according to Deutsche Bank’s 2026 European CLO outlook

Concerns growing about potential turn in the credit cycle – Goldman 2026 outlook
Investors should monitor signs of late-cycle behaviours, with the possibility that pressure on leverage ratios may result in credit ratings downgrades, Goldman Sachs Asset Management said in its 2026 investment outlook

ECB hits out at proposed securitisation regulation overhaul
The European Central Bank released a paper criticizing parts of the European Commission's proposed changes to its securitization framework