Notably, Redding Ridge achieved an impressive feat by pricing three resets on the same day—Friday, 21 March 2025. The last time a manager accomplished something similar was Intermediate Capital Group (ICG), with three reissues in mid-2018, and Alcentra, with three refinancings in early 2021.
How Have EU CLO Managers Stacked Up Against the Loan Index Since Inception? This study examines the long-term performance of 218 EU CLO deals from the 2015–2019 vintages, using the Morningstar European Euro-Denominated Loan Index as the benchmark. As of 19 March 2025, EU CLO managers, on average, had outperformed the loan index on an inception-to-date basis—driven primarily by principal value return outperformance—while their interest return remained broadly in line with that of the index.
According to independent analysis by CLO Research, Generate Advisors has consistently delivered outperformance against the Morningstar LSTA U.S. B/BB Ratings Loan Index on an unlevered basis in recent years. Here’s a set of interview questions from CLO Research, accompanied by responses from Rizwan Akhter, Head of Generate Advisors.
Last week experienced a marked widening in both asset and CLO liability spreads. However, as of 14 March, the arbitrage remained largely stable week on week, with asset spreads (4-week average) and CLO WACC increasing in tandem by approximately 5 bps.
Below are tables presenting the MVOC (AAA-B) and EQ NAV of US BSL CLO deals by vintage, based on asset...
A sample of 1,455 US BSL CLO deals (vintage 2013–2023) is included in this study. Deals with a collateral pool...
A sample of 498 EU CLO deals (vintage 2013–1H 2024) is included in this study. Deals with a collateral pool...
If these deals are liquidated, UBS AM and Redding Ridge stand to earn incentive fees in the healthy current loan market.
Based on SCI BWIC data, between 17 July 2024 and 8 March 2025, approximately 66 US CLO equity tranches from the 2021 vintage appeared on BWIC lists, where list owners provided colour on the equity tranches. Based on this colour, US CLO equity tranches from the 2021 vintage recorded a median IRR of
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.
As shown in the table below, 2018 and 2021 vintage deals have a tight WACC, which is typically an attractive feature for equity investors—after all, who wouldn’t want to lock in a long-term, low cost of funding?
As of 7 March 2025, the latest arbitrage metric stood at 233 bps. The loan index’s four-week moving average of discounted spreads has tightened by 30 bps since the beginning of the year, while the top-tier WACC print has also tightened, albeit by a smaller margin of 22 bps over the same period.
A sample of 500 EU CLO deals (vintage 2013–1H 2024) is included in this study. Deals with a collateral pool...
A sample of 1,457 US BSL CLO deals (vintage 2013–2023) is included in this study. Deals with a collateral pool...
In the CLO market, AUM growth is a fundamental aspect of the business model, with scale playing a crucial role...
