CLO Musings
The CLO market has reached yet another milestone in terms of collateral AUM, surpassing US$1.5 trillion as at 30 September...
The CLO market has reached yet another milestone in terms of collateral AUM, surpassing US$1.5 trillion as at 30 September...
Based on yesterday’s EU CLO AAA BWIC colour, DMs ranged from 69 bps to 97 bps, corresponding to WALs of 0.95 to 2.58 years. With non-short-dated reset AAAs printing at around 130 bps, the current EU CLO AAA term curve appears fairly steep.
In aggregate, US CLO managers have sold more than $1.38 billion of First Brands loans, while EU CLO managers have sold approximately EUR 373 million.
The top performers include Oak Hill Advisors, UBS AM, and Oaktree Capital.
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.
In aggregate, US CLO managers have sold more than $1.38 billion of First Brands loans, while EU CLO managers have sold approximately EUR 373 million.
