CLO portfolios are diversified across sectors — but not by business model
Sector analysis isn’t deep enough to discover which companies will be boosted by AI — and which will nosedive

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

BSL markets again demonstrated their fundamental resilience
In 2025, CLO issuance remained strong, despite LMEs, defaults and tariffs. Next year should be similar, if managers don’t become complacent

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

As the US courts become more involved, the number of aggressive LMEs should decrease
Loan and CLO investors would be better served by working together

Psychology was a factor in managers’ reluctance to sell out of First Brands
We may overvalue what we already hold due to an emotional attachment

After eight years of Creditflux columns, Thomas Majewski looks back at the factors that have most impacted CLO returns
Fighting to be in the winning group in an LME is a skill managers must perfect

Post-COVID, companies are adroit at managing supply-chain disruptions
With plenty of capital seeking a home and high grade credits well positioned, IG spreads will stay tight, reckons Duncan Sankey

Success in a larger market requires increased discipline and innovation
As the US CLO market grows, lower quality loans and increased volatility create new challenges, writes Tetragon's Dagmara Michalczuk

Churchill’s survey of private equity firms suggests M&A is returning to normal levels
Senior PE executives are confident in both deal activity and returns

If Donald Trump causes a collapse in equity prices, IG credit should be a safe haven
When valuations are this heady, policy missteps will be punished

Differences in scale and sector exposure mean US and European CLOs offer different risks and rewards
European CLOs offer more sustainable arbitrage opportunities than US CLOs

Public and private credit may be converging — but the differences are still important
COVID defaults could have been materially worse without private credit

As direct lenders seek efficient, scalable financing tools, private credit CLOs are growing fast
PCLOs have reached USD 135bn, or 13% of the overall CLO market

The market will not look kindly on managers that don’t reset their deals
In today’s CLO market, the choice is stark: reset or slowly perish

CLOs that refinanced in 2024 are set to take advantage of market turbulence
There are opportunities for CLOs to build par through discounted purchases

Long-term CLO investments require strong distributions, healthy equity NAVs, and an extended life

Large managers have many advantages. But they don’t hold all the cards

Private credit should be resilient in a slowdown – but investors have decisions to make

Despite superficial similarities, CLOs and SRTs don’t have much in common

The NAIC’s Super Bowl Sunday memo seems to suggest regulations may not change greatly

Tariffs, trade wars and inflationary pressures are unlikely to prevent CLOs doing well this year
No two years are the same — but 2025 is shaping up to be strong

International trading systems were broken before Trump started smashing them up
Whether he succeeds in using economic might to assert US authority in the world, Trump will be brandishing the weapon of tariffs in an already fragile international trading system.

We expect to see global banks as the leading buyers of CLO triple As in 2025
As the market finds steady footing in an elevated rate environment, a big shift is happening at banks: after a brief period of restraint, they’re getting back into the business of lending and underwriting.

Without active management, safe CLO portfolios will limit returns
The CLO market is witnessing a shift towards purportedly ‘safer’ portfolios in new issue CLOs. But market sentiment has led many CLO collateral managers to perhaps unduly minimise risk over prudently maximising returns.