CLOs
A CLO is a collateralized loan obligation or collateralised loan obligation known collectively as CLOs.
CLOs are CDOs that reference loans, such as leveraged loans, SME loans or a bank's whole loan book (a balance sheet CLO). They come in both managed CLO and static CLO form and can be market value CLOs or synthetic CLOs.
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CLO success factors
Panellists at SCI and Reed Smith CLO event discuss sustainab...
Sustainability considerations, an accelerating influx of new managers and the CLO asset class’s long-term track record were at the core of discussions at a recent SCI CLO event hosted by Reed Smith. SCI spoke to a panel of experts for their views on the future of CLOs with particular reference to sustainability.
CLOs have been a successful financing .......
News Analysis 14 February 2025
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SABL 'mutually beneficial' for private credit funds and banks
Cadwalader partner Jeffrey Nagle and special counsel Michael...
The rise of private credit has been one of the biggest stories in finance in the last decade, and some observers forecast that by 2028 the private credit market once again will double in size. This continued growth, as well as other market and regulatory forces affecting bank lenders, has promoted innovation in the space. Increasingly, and perhaps out .......
Talking Point 10 February 2025
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Job swaps weekly: Haynes Boone poaches asset securitisation team
Securitisation people moves and key promotions
This week’s round-up of securitisation job swaps sees Haynes Boone strengthen its fund finance and asset securitisation practices with the hiring of seven attorneys from Seward & Kissel in New York. Elsewhere, several other law firms have added partners in Australia and Japan, while ARC Ratings has recruited a new Hong Kong-based ceo to spearhead its expansion in the .......
Market Moves 7 February 2025
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Mid-market CLOs: Blurring the lines with BSL vehicles
Hybrid CLOs on horizon with convergence of MM and BSL CLOs
The CLO market is transforming with growing cross-pollination between middle-market (MM) CLOs and broadly syndicated loan (BSL) CLOs. Driven by investor confidence, tighter spreads, and increasing acceptance of private credit structures as viable alternatives to public markets, this convergence is raising questions about whether hybrid CLOs could be the next evolution of this product.
While terms like private .......
News Analysis 6 February 2025
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Middle market CLO boom to continue
This year is expected to bring continued resilience, fewer defaults, and rising investor confidence
Last year saw record-breaking middle market (MM) CLO issuance, fuelling massive growth in credit estimates, according to S&P Global Ratings' latest Private Credit And Middle-Market CLO Quarterly report.
Over 3,500 credit estimates were issued in 2024 alone, S&P Global said in its report, mostly refreshing existing ones but also evaluating new issuers. This surge shows just how big .......
News Analysis 5 February 2025
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Shaping Aperture's structured credit strategy
Vladimir Lemin, global head of structured credit at Aperture Investors, answers SCI's questions
Q: You recently joined Aperture to lead the newly launched structured credit strategy. What attracted you to the firm and role?
A: Throughout my career, I’ve been fortunate to work with and learn from some of the best investors and risk managers at Magnetar Capital and One William Street Capital. My time at the Wharton School also sparked .......
The Structured Credit Interview 28 January 2025
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Balancing CLO demand with challenges
Canyon Partners forecasts another strong year for CLOs fuele...
Following last year’s record end for CLO issuance in both the US and Europe, expectations for issuance in 2025 are similarly elevated, if not in excess of 2024, according to Canyon Partners.
Speaking to SCI, Erik Miller, partner and co-head of the CLO business at Canyon Partners, highlights that this record was driven in part by pent-up demand for .......
News Analysis 24 January 2025
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Job swaps weekly: Investcorp names successors to Ghose and Shandell
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees Investcorp promoting two team members to lead its liquid credit investment strategies as part of a succession plan. Elsewhere, ARC Analytics has appointed a new ceo for its data business, while Ninety One has hired an RBC BlueBay Asset Management veteran as portfolio manager on its developed market specialist credit team.
Market Moves 24 January 2025
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CLO ETF momentum to continue in 2025
Strong fundamentals and growing demand set stage for robust triple-A CLO returns in 2025
The launch of Europe’s first CLO ETF by Fair Oaks Capital on Deutsche Boerse last year indicates that investor demand will likely drive ETF popularity in 2025.
Speaking to SCI, Miguel Ramos Fuentenebro, co-founder and partner of Fair Oaks, explained that the motivation behind launching AAA CLO UCITS ETF (FAAA) back in September was to address the lack .......
News Analysis 14 January 2025
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Job swaps weekly: Aperture expands into structured credit
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees Aperture Investors hiring a senior executive to lead its newly launched structured credit division. Elsewhere, JPMorgan is fleshing out its global CLO primary team with a number of senior promotions and new hires, while two industry veterans have co-founded capital markets service provider Altius Advisors.
Aperture Investors has hired Vladimir .......
Market Moves 10 January 2025
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Janus Henderson bets on Europe
Global asset manager launches first active fixed income CLO ETF in the region
Global asset management firm Janus Henderson Investors has launched its first active fixed income CLO ETF in Europe.
The vehicle, named Janus Henderson Tabula EUR AAA CLO UCITS ETF (JCL0), follows the recent introduction of the Janus Henderson Tabula Japan High Conviction Equity UCITS ETF (JCPN) in October 2024 and the Janus Henderson Tabula Pan European High Conviction .......
News 9 January 2025
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JP Morgan sticks to European CLO forecast
Rising demand for carry trades and floating-rate assets bols...
The absence of new loan supply next year could impact JP Morgan's €45bn forecast for CLO new issuance and €50bn for refi/reset in Europe in 2025, the company said during its recent EMEA CLO Media Roundtable in London.
However, Rishad Ahluwalia, head of CLO research at JP Morgan, pointed out that despite issuance not picking up throughout this year, the .......
News Analysis 23 December 2024
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Job swaps weekly: Gibson Dunn poaches digital infra specialist
People moves and key promotions in securitisation
The final round-up of securitisation job swaps of the year sees Gibson Dunn recruit a digital infrastructure specialist as partner. Elsewhere, Cadwalader has promoted a number of lawyers with securitisation-related expertise, while Ares has added a principal to its alternative credit team.
Emily Naughton has joined Gibson Dunn’s Washington, DC office as a partner and member of the .......
Market Moves 20 December 2024
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MidOcean Partners closes inaugural CLO equity fund
The US$304m fund will invest in the equity tranches of the firm's managed CLOs
MidOcean Partners has closed its inaugural CLO equity fund with US$304m in capital commitments and support from a diverse base of institutional investors including existing clients.
The alternative asset manager said MidOcean CLO Equity Fund I aims to generate risk-adjusted returns by acquiring equity tranches in CLOs managed by MidOcean.
Led by Joseph Rotondo and Jamil Nathoo, .......
News 17 December 2024
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Mubadala Capital to acquire minority stake in Silver Rock Financial
Partnership will give Silver Rock Financial access to Mubada...
Mubadala Capital is to acquire a 42% stake in Silver Rock Financial through cash and stock. The acquirer, the alternative asset management subsidiary of Abu Dhabi sovereign wealth fund Mubadala Investment Company, said this stake could increase to 50% over time, with plans to invest over US$1bn in Silver Rock funds as part of the agreement.
The partnership aims to .......
News 6 December 2024
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Nuveen raises US$413m for second CLO issuance strategy
New fund provides investors with control equity positions in newly issued Nuveen-managed CLOs
Global asset management firm Nuveen has closed its second CLO issuance strategy at US$413m, with capital from public and private pension plans and family offices, the firm announced on Tuesday.
Nuveen’s CLO issuance strategy will provide investors with controlling equity interests in Nuveen's new issue CLOs, the firm said in a statement. It also offers investors access to .......
News 3 December 2024
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Asset migration
Euro mid-market deal flow set to grow
As year-end approaches, the private credit market is poised for continued expansion, with middle-market corporate deals expected to drive much of that growth. Speakers at Morningstar DBRS’ Credit Outlook 2025 in London last week outlined a positive trajectory for the sector, spurred by a global asset migration from public to private markets, maturing private equity portfolios and the overall .......
News 18 November 2024
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CLO manager corner series: Investcorp
CLO market faces loan supply challenges, but outlook remains strong
A limited supply of new loan issuance could challenge the CLO market in the future, with the development of a private equity pipeline needed, according to Investcorp.
Barry Lane, managing director of CLO new issuance in Europe at Investcorp, tells SCI that despite this risk, the current number of deals being marketed, as well as those that have .......
The Structured Credit Interview 18 November 2024
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Ex-Accunia exec to launch Euro CLO equity investment platform
Grane speaks to SCI about building a new London team and seeking investors
Christian Grane, the former head of investments at Accunia Credit Management, is aiming to launch a dedicated European CLO equity investment platform in the second or third quarter of next year.
Speaking to SCI, Grane, who left Accunia in September after five years, says he is currently in the process of speaking to potential investors and partners to launch .......
News 13 November 2024
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EU CLO performance realigns with loan index post-volatility
CLO Research Group's Tan analyses how EU CLO managers' perfo...
European CLO managers have returned to performing on par with the Morningstar European Euro-Denominated Loan Index on average following four challenging years, says Poh-Heng Tan, founder of CLO Research Group, in this exclusive article for SCI. Yet individual results vary widely and investors should remember that CLO managers do not eliminate investment risk.
Talking Point 8 November 2024
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Democratising investment
Christian Parker, structured credit partner at Paul Hastings...
It’s a well-established truth that European retail investors have no access to credit investments in the form of loans. However, this isn’t quite right and overlooks the role of investment trusts, which have for many years offered retail investors exposure to credit markets. Funds managed or associated with Fair Oaks, CVC Credit Partners, AXA Investment Managers and others all .......
Talking Point 4 November 2024