Market Value Over-Collateralization (MVOC), for instance, at the BB tranche level, is calculated by dividing the collateral market value (MV) by the sum of CLO liabilities (AAA to BB). MVOC is a crucial point-in-time metric for pricing CLO-rated tranches, closely monitored by primary and secondary market participants.
Our greatest weakness lies in giving up. The most certain way to succeed is always to try just one more...
Investing in CLO equity demands a thorough understanding of the asset class and a carefully considered strategic approach. As a first-loss investment, it carries inherent risks, but it also offers the potential for substantive returns. The performance of CLO equity investments is influenced by several key factors.
A sample of 409 deals (2015–2019* vintage deals) is included in this study. The benchmark loan index used is the...
A sample of 409 deals (2016–2019* vintage deals) is included in this study. The benchmark loan index used is the...
CLO managers, on average, have closely tracked the loan index in 2024, following a period of relative outperformance of 10–20 bps from 2021 to 2023.
Below are tables presenting the MVOC (AAA-B) and EQ NAV of US BSL deals by vintage, based on asset prices...
Market Value Over-Collateralization (MVOC), for instance, at the BB tranche level, is calculated by dividing the collateral market value (MV) by the sum of CLO liabilities (AAA to BB). MVOC is a key point-in-time metric for valuing CLO-rated tranches, widely tracked by participants in both primary and secondary markets.
