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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Seasoned CLO double-Bs show diverging discount margins
Poh-Heng Tan from CLO Research provides insights on recent s...
As more CLO BB tranches move further beyond their reinvestment periods, secondary market dynamics have begun to reflect a wider divergence in performance and risk pricing.
An analysis of double-B bonds more than a year post-RP reveals a broad spectrum of discount margins, underscoring how structural seasoning, prepayment behavior, and deal-specific fundamentals are shaping valuation outcomes across the .......
News Analysis 4 April 2025
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European CLO issuance up year-on-year
March 2025 European CLO issuance increased by approximately...
Primary
European CLO issuance reached €6.26bn in March, compared to €5.32bn in March of last year and €9.49bn in February 2025. Deal sizes were notably large, peaking at €515m for RRE 8 Loan Management, and spreads were tight. Eight resets priced during March, while four refinancings occurred.
News Analysis 3 April 2025
Canyon Partners closes nearly US$1bn CLOs across US and Europe
The latest deals bring the firm's CLO AUM to over US$10.9bn
Canyon Partners has today closed two of its CLOs totaling nearly US$1bn. With these closings, the firm now manages over US$10.9bn in combined CLO AUM through 24 active CLOs.
Arranged by Bank of America, Canyon Euro CLO 2025-1 is Canyon's first new issue CLO of the year, with a 1.5-year non-call period and 4.5-year reinvestment period. Canyon CLO .......
News 31 March 2025
SCI In Conversation Podcast: Jason Smilovitz and Midroog's Moty Citrin (part 2)
We discuss the hottest topics in securitisation today...
In the second part of this episode of the SCI In Conversation podcast, SCI’s Selvaggia Cataldi continues her discussion about Israel’s securitisation market with Moty Citrin, head of financial institutions and structured finance at Moody’s subsidiary Midroog, and independent senior securitisation consultant Jason Smilovitz.
Citrin and Smilovitz discuss the impact of the country's recent legislative changes, investor sentiment, market liquidity, .......
News Analysis 27 March 2025
Uncovering drivers behind recent EU CLO double-B and equity tranche performance
Poh-Heng Tan from CLO Research provides insights on recent secondary trading
In the evolving world of European CLOs, secondary market dynamics offer a telling glimpse into investor sentiment and relative value. Recently, trading activity in double-B and equity tranches has revealed notable pricing trends and performance disparities.
For instance, based on SCI BWIC data, CRNCL 2018-10X E (Cairn CLO X) traded at noticeably tighter DM levels (based on .......
Talking Point 26 March 2025
Eldridge expands ETF offering providing European investors access to triple-A rated CLO tranches
Eldridge expands ETF offering in Europe with TAAA, targeting...
To offer non-US investors access to triple-A rated CLO tranches with tax advantages over US-registered ETFs, Eldridge has launched its first actively managed fixed income ETF in Europe, the AAA CLO UCITS ETF (TAAA).
Speaking to SCI, the firm highlights it anticipates that investor interest will continue to grow as they learn more about the asset .......
News Analysis 21 March 2025
Acer Tree JV to expand CLO platform
Partnership driven by the vision to grow AUM to €2.5bn-€3bn
The run into difficult markets in 2023 has led to Acer Tree Investment Management’s decision to expand its CLO platform by partnering with alternative credit fund, Ymer SC, last month. The European CLO manager that debuted in 2022 says under the new plan, its CLO platform - the Logic Lane series – will target gradual CLO issuance, .......
News Analysis 17 March 2025
Job swaps weekly: Wellington launches private real estate credit platform
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees Wellington Management make a number of appointments to its newly launched private real estate credit platform. Elsewhere, KBRA Analytics has named a new chief strategy officer, while Marsh has appointed a head of political risk and structured credit.
Wellington Management has expanded its private investing capabilities with the formation of .......
Market Moves 14 March 2025
Reflections on the recent CLO equity BWIC of 11 March
Poh-Heng Tan from CLO Research provides insights on a recent CLO equity list
Based on SCI BWIC data, between 17 July 2024 and 8 March 2025, approximately 66 US CLO equity tranches from the 2021 vintage appeared on BWIC lists, where list owners provided colour on the equity tranches. Based on this colour, US CLO equity tranches from the 2021 vintage recorded a median IRR of 7.8%, with the 75th percentile .......
Talking Point 13 March 2025
US CLO fintech expands presence whilst navigating regulation, loan scarcity
Siepe's US$30M investment fuels innovation in CLO optimisati...
With the recent expansion of Siepe’s operations to Europe and Malaysia, the US-based fintech providing solutions for CLO and private credit managers highlights regulation hurdles and supply scarcity as the main challenges it has encountered.
Speaking to SCI, Siepe CEO Michael Pusateri, says despite the challenges interplay between client needs and regulatory influences creates a compelling narrative .......
News Analysis 12 March 2025
CLO secondary trades show appetite for equity tranches
CLO Research Group's Poh-Heng Tan provides insights on recent CLO equity BWIC activity
Timing is always crucial in trading, and it is no surprise that selling CLO equity tranches in today’s strong market can be rewarding, says Poh-Heng Tan, founder of CLO Research Group.
Recent BWIC colour on CLO equity tranches indicates that many have traded very well. Looking at trades that took place between 27 February and .......
Talking Point 11 March 2025
February CLO market update
European CLO market surges in early 2025 with record issuanc...
Deutsche Bank’s latest CLO monthly report highlights how February was another busy month for the European CLO market, with new issuance totalling €9.1bn across 19 deals, while reset volumes reached €2.2bn from five transactions. This brings year-to-date (YTD) new issue volumes to €12.2bn from 26 deals across 24 managers—double the volume compared to the same period last year. Reset .......
News Analysis 6 March 2025
FT snaps up Global ABS and ABS East
Sale of Invisso by Delinian sees structured finance conferences come under FT Live banner
The Financial Times has acquired Invisso, parent company of structured credit conferences Global ABS and ABS East, from Delinian. The deal will see the transfer of Invisso’s full portfolio – also including the Central & Eastern European Forum, the Covered Bond Congress and the Global Borrowers and Bond Investors Forum – to the FT Group.
The transaction comes .......
News 5 March 2025
CLO investors face rising risks
Declining credit enhancements, increased warehouse activity,...
CLO investors are grappling with declining credit enhancements and tighter spreads, raising concerns about risk assessment and future returns. Speaking to SCI, market sources highlight challenges for mezzanine and equity investors as attachment points weaken.
Despite these pressures, increased warehouse activity suggests stronger European CLO issuance ahead. SCI’s sources emphasise the importance of stress testing and careful credit .......
News Analysis 5 March 2025
Job swaps weekly: Santander rings changes in structured finance division
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees Santander making a number of appointments as part of a major reshuffle of its structured finance advisory and lending platform. Elsewhere, DLA Piper has appointed a new co-head of its structured finance practice, while Piper Sandler has snapped up a new md and co-head of its structured finance group.
Santander has reorganised its structured .......
Market Moves 28 February 2025
AlbaCore sees CLO refi, reset opportunities
AlbaCore monitors market for CLO refinancing opportunities as M&A activity picks up
AlbaCore Capital Group may explore opportunities related to its current portfolio, such as potential resets and refinancing of some structures, says Deborah Cohen Malka, partner and portfolio manager at the firm.
AlbaCore always considers potential resets and refinancing, and is monitoring the market closely for those opportunities.
Speaking to SCI, Malka states: "We take an opportunistic approach .......
News Analysis 27 February 2025
Alcentra secures US$1bn for CLO strategies
New capital will boost Alcentra's European CLO AUM to US$4bn over the next three years
Alcentra recently secured US$1bn in equity capital commitments for its CLO-focused strategies, driven by Inflows from pension funds, endowments, family offices, and SWFs in the US, Asia, and Europe, the firm tells SCI.
The majority of the new capital will be invested in CLO mezz and equity through the firm's third-party CLO tranche investing platform, with a portion .......
News 27 February 2025
Job swaps weekly: Reckoner launches with backing from RedBird
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees the launch of Reckoner Capital Management, an alternative credit asset manager led by a former Panagram Structured Asset Management ceo and cio. Elsewhere, a former Goldman Sachs partner and securitisation specialist has joined One William Street Capital Management as deputy cio and partner, while Chorus Capital has snapped up a former senior exec .......
Market Moves 21 February 2025
Wellington Management closes debut CLO fund on US$194m
CLO Partners Fund exceeds US$150m target to invest in BSL CLO equity tranches
Investment management firm Wellington Management has closed its inaugural Wellington CLO Partners Fund I, raising US$194m in capital commitments, including US$27m from affiliates.
The vehicle focuses on majority equity tranches of Wellington-managed US broadly syndicated CLOs and has surpassed its initial target of US$150m.
Alyssa Irving, CLO portfolio manager at Wellington Management, told SCI that the investor .......
News 21 February 2025
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
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