Reset or refinancing?
The CLO market is expecting another strong half year for both resets and refinancings. But what factors are leading equity investors to prefer resetting deals over refinancing them?

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

Reset focus shifts to pre-COVID deals
As spreads tighten, managers are looking to reset CLOs that priced before the onset of the COVID pandemic — even if this slightly increases the deals’ weighted average cost of capital.

Relating arbitrage, issuance and equity
Day one arbitrage remains a key metric for CLO equity investors. But how does the US BSL CLO arb today compare with historical averages? And does the figure impact deals’ equity returns?

Rapid growth shows middle market CLO no longer BSL’s little brother
Middle market CLOs, the once niche sector that securitises private credit loans, is seeing a growth spurt. What was a junior partner to the much larger BSL world is now a sizeable entity of its own.

Full steam ahead in the US and Europe
We’re now six months into 2024, and according to our latest league tables, the CLO engine shows no sign of slowing down, as spreads grind tighter and resets get underway in Europe

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

Older CLOs show they’ve still got it
The CLO primary market is vibrant — but some older vintages are still performing very well. We look at the equity performance of US BSL CLOs that have exited their reinvestment period

Moving forward together
This year’s Creditflux London Women in CLOs event saw almost 100 participants gather for an evening of networking, cocktails and perfume-making at the Landmark Hotel

What a difference a year makes
Speakers at this year’s CLO Symposium were united in their optimism — they feel the CLO markets in the US and Europe are doing well, and that should continue for the rest of 2024

GoldenTree takes home the big prize
Our 16th annual awards saw the CLO community gather at London’s Landmark Hotel to recognise the best performing CLOs, CLO managers and CLO funds — and the global manager of the year

BofA: innovation and consistency
The first of our new series of CLO arranger profiles takes a look at Bank of America, the largest shop in the market, where one team covers CLO arranging, trading and financing, globally

CLOs grow from strength to strength
The first quarter of 2024 saw such extraordinary issuance across the global CLO market that it was enough to outpace the equally extraordinary amortisation occurring in older deals

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?

What do reset deals have in common?
Is it possible to predict which deals are likely to be reset next? With reset mania continuing to grip the US CLO market, we search for common factors among 2014-2021 deals that were reset

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

How many CLOs will be called this year?
Most CLOs are called when loan market prices are high. Distributions and equity NAV are also important, and they suggest that over 30 2017 and 2018 deals are now ripe for redemption

CLO rankings: 2023 turns out OK
Last year may not have seen records in the primary CLO market, but it was a very solid performer with a strong finish. 

Ask the market where spreads are heading
Nothing brings the CLO market together like a good moan about the state of the arb. But according to our data, the arbitrage for new-issue US CLOs has remained in the same range for years. 

A strong year for CLO strategies
After the pain of 2022, credit fund managers must have been praying that 2023 turned out better. It did.

Banks predict steady year ahead
It’s the season for predictions and the CLO market is no exception, with all the banks having their say. We’ve rounded up their forecasts for new issuance and resets in the US and Europe

2023: a bumper year for CLO funds
It looks like 2023 will finish as a solid year for most credit funds, and an outstanding one for CLO funds. But funds pursuing corporate distressed strategies continued to struggle

Tightening spreads show market’s growing maturity
As another tumultuous year ends, we review how CLO spreads are looking around the world. In summary? Given current macroeconomic woes, the situation could have been much worse

How worried should we be about defaults?
As defaults in the US loan market continue to stack up, we investigate the fallout for CLO investors by focusing on the OC tests of double B tranches across 10 years of US CLO vintages

What CLO investors really need to know
From the drivers of CLO performance to cashflow modelling, these are the seven things every CLO equity investor needs to know. This article is an extract from Dealscribe and CLO Research’s guide What CLO Equity Investors Need To Know