Where the Risks Sit: CLO Manager Exposure to Challenging Credits
Please see below a selection of articles highlighting manager-level exposure to some of the more challenging credits.
Please see below a selection of articles highlighting manager-level exposure to some of the more challenging credits.
A Goldilocks loan market environment is generally most favourable for CLO equity—aside from the pull-to-par trades observed in 2020, 2022,...
US CLOs’ overall exposure to Kofax term loan is approximately USD 567 million. As of 3 February 2026, 294 US CLO deals, managed by 21 managers, reported an average deal-level exposure of around 48 bps.
On Tuesday, close to USD 200 million of US CLO equity tranches were offered on BWICs, with four majority stakes in circulation. Of these, only one majority stake traded. Market conditions remain challenging, with asset spread compression, elevated idiosyncratic risks, and several tranches attracting bids below clean equity NAV due to longer non-call periods.
Tracking exposure to underlying CLO collateral priced below 80 and 70 can serve as a useful proxy for assessing tail risk within the asset pool. While this metric has inherent limitations—most notably that it does not capture stressed or distressed positions that have already been traded out of the collateral pools—it nevertheless provides a timely and standardised snapshot of downside risk embedded within CLO collateral portfolios.
US CLOs’ overall exposure to Kofax term loan is approximately USD 567 million. As of 3 February 2026, 294 US CLO deals, managed by 21 managers, reported an average deal-level exposure of around 48 bps.
