US CLO Equity IRR Analysis – Hold to Maturity vs Sale
Among the recently liquidated deals, those managed by CIFC and Carlyle—such as CIFC 2013-1A SUB, CIFC 2015-1A SUB, and CGMS 2013-1A SUB—stood out with IRRs ranging from 12.8% to 15.2%.
Among the recently liquidated deals, those managed by CIFC and Carlyle—such as CIFC 2013-1A SUB, CIFC 2015-1A SUB, and CGMS 2013-1A SUB—stood out with IRRs ranging from 12.8% to 15.2%.
BBAM European CLO IV’s reset was recently priced, with its AA tranche coming in at 190 bps.
Among managers with three to ten deals in the sample, Barrow Hanley, Diameter Capital, Whitebox, Warwick Capital, Hayfin Capital, Wellington Management, New Mountain Capital, and Post Advisory performed very well from an MVOC perspective.
Avoca CLO XXIX was recently reset, with its AAA tranche pricing at 128 bps — the tightest among recent resets.
In recent months, a strong loan market, marked by elevated loan prices and ongoing repricing activity, has prompted the redemption of several seasoned EU CLO deals. This article examines a sample of seven EU CLOs that have recently been redeemed.
The table below shows the 15 largest global CLO managers, ranked by their CLO assets under management (rather than liabilities), in USD billions as of 30 June 2025.
RRE 6 Loan Management’s reset was recently priced, with its AAA tranche at 131 bps, the tightest among its reset peers. But it still offers strong value to investors.
Please refer to the table below for a list of CLO managers with global CLO collateral AUM of at least $2 billion, broken down by US BSL, US MM, and EU CLOs as of 30 June 2025.
Please refer to the table below, which shows the 2.0 BSL CLO AUM trends for each US BSL CLO manager since 2012. The AUM (in billions of dollars) for each period is based on CLO deal pricing dates and the notional of the underlying collateral, rather than CLO liability notional. For consistency, the AUM figures for each manager have been adjusted to reflect mergers and acquisitions as well as changes in management contracts. The top ten US BSL CLO managers are Blackstone, Carlyle, UBS AM, CIFC, RRAM, Octagon, Ares, Neuberger Berman, Sound Point, and Elmwood. As of 30 June 2025, 33 managers oversaw at least $10 billion of BSL CLO AUM, with 12 of them managing $20 billion or more.
Investors and CLO managers may email info@clopremium.co.uk to request a copy of this article.
Four top-tier reset AAA prints at 125bps were reported recently, each showing a different value relative to risk.
Yesterday, three US CLO BB bonds appeared on BWIC (source: SCI), with DMs ranging from 546 to 717, depending on their MVOC and WAL.
The steady loan spread compression since early 2024 has been particularly negative to long-dated CLO equity, especially those issued in 2024 that remain in their non-call period. This feature benefits CLO debt investors, who are able to lock in wider spreads for longer, but comes at the expense of equity holders.
A sample of 1,674 US BSL CLO deals (vintage 2013–2024) is included in this study. Deals with a collateral pool factor below 55% are excluded.
Among the top performers are Oak Hill Advisors, UBS AM, and Palmer Square Capital Management.