CLO Musings: A Rather One-Sided Market
CLO managers are operating in a loan market where pricing discipline appears largely absent. A significant proportion of loans continues...
CLO managers are operating in a loan market where pricing discipline appears largely absent. A significant proportion of loans continues...
A Goldilocks loan market environment is generally most favourable for CLO equity—aside from the pull-to-par trades observed in 2020, 2022,...
As of 16 January 2026, the arbitrage metric for non-short-dated US CLOs stood at approximately 155 bps, tighter than at the end of last year despite a lower WACC. New issue upfront costs and management fees are not included in the calculation.
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.
New EU CLO issuance rose by around 24% year on year to approximately EUR 60 billion in 2025, building on...
As of 16 January 2026, the arbitrage metric for non-short-dated US CLOs stood at approximately 155 bps, tighter than at the end of last year despite a lower WACC. New issue upfront costs and management fees are not included in the calculation.
