CLO Research

Basic Premium

Insights on Recent CLO Equity BWIC Colour

Recent BWIC colour on CLO equity tranches, based on SCI BWIC data, indicates that many have traded well. The IRRs presented in the table within this article reflect the IRRs that primary investors would have achieved, assuming a primary issue price of 95. Notably, among the 2016–2017 vintage deals, Generate CLO 3 recorded an IRR of 13.4%, based on a cover price of 42.8%. This tranche is considered one of the top performers from that vintage. Some more recently issued equity tranches, such as Elmwood CLO 17, Elmwood CLO VII, and Madison Park Euro Funding XIX, have delivered strong IRRs in the range of 15.6% to 18.3%. Primary investors would be pleased to have invested in these equity tranches.

Basic Premium

Trends of 2.0 US BSL CLO Collateral AUM by Manager (2012-2024)

Please refer to the table below, which displays the trends in 2.0 US BSL CLO AUM for each of the top 100 US BSL CLO managers since 2012. The year-end notional AUM (in billions of dollars) for each period is calculated based on the pricing dates of CLO deals and the notional of the underlying collateral. For a consistent comparison, the AUM figures for each manager have been adjusted for mergers and acquisitions and changes in management contracts. In 2024, 37 of the top 100 managers experienced a decrease in their assets under management. Conversely, Elmwood, AGL, and Onex significantly boosted their assets, each securing more than 10% of the total growth recorded that year. Irradiant captured the largest market share of AUM growth in 2023, with Blackstone leading in 2022 and 2021, and RRAM in 2020.

Basic Premium

CLO MVOC and CLO Equity NAV Across All Tranches and Vintages

Notably, EU CLO equity NAV metrics surpass those of their US BSL CLO counterparts across all vintages, despite the latter having considerably more diversified underlying portfolios, as shown in tables below. In particular, the equity NAV metrics of EU CLOs from the 2013–2014 and 2018 vintages are markedly higher than those of their US counterparts.

1 35 36 37 110
Page 36 of 110