CLO Research

The CLO market has reached yet another milestone in terms of collateral AUM, surpassing US$1.5 trillion as at 30 September...

The table below provides the full list of 71 EU CLO managers and their collateral AUM trends since 2017. Collectively, they oversee a total of €281 billion in CLO collateral assets under management (rather than CLO liabilities) as at 30 September 2025.

The reset of Bridgepoint CLO VI reduced its WACC by 29.4 bps, more than offsetting the 27.2 bps decline in its collateral WAS since its first reporting date in August 2024. This reset saw its AAA tranche tighten by 19 bps, from 149 bps to 130 bps. At 130 bps, the AAA tranche represents strong value for AAA investors.

CLO equity has faced a challenging period, with ongoing asset repricing weighing on annual distributions. Still, there are bright spots in the market. For example, a majority equity stake, ARES 2023-ALF4A SUB, was recently traded via BWIC. The deal’s accretive reset, priced by Citigroup on 3 October 2025, reduced its WACC by nearly 80 bps—more than offsetting the 60 bps decline in its underlying collateral spread since inception.

CLO equity has faced a challenging period, with ongoing asset repricing weighing on annual distributions. Still, there are bright spots in the market. For example, a majority equity stake, ARES 2023-ALF4A SUB, was recently traded via BWIC. The deal’s accretive reset, priced by Citigroup on 3 October 2025, reduced its WACC by nearly 80 bps—more than offsetting the 60 bps decline in its underlying collateral spread since inception.

The reset of Bridgepoint CLO VI reduced its WACC by 29.4 bps, more than offsetting the 27.2 bps decline in its collateral WAS since its first reporting date in August 2024. This reset saw its AAA tranche tighten by 19 bps, from 149 bps to 130 bps. At 130 bps, the AAA tranche represents strong value for AAA investors.