CLO Research

Freemium

Assessing Tail Risk: Price Buckets Below 80/70/60

Tracking price buckets at 80/70/60 or below for CLO underlying collateral can be useful in assessing tail risk in the asset pool. Among these price buckets, those at 60 or below can be particularly valuable in identifying assets that are truly distressed. However, it’s still important to consider the impact of trading activity on these buckets, as CLO managers may have traded out of distressed assets to crystallize portfolio losses. Therefore, it’s important to evaluate a manager’s performance as a whole. The following tables show the price buckets at 80/70/60 or below for US and EU CLOs by vintage, based on asset prices as of 2 June 2023.

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