EU CLO New Issue Arbitrage Trend (Updated)
As at 16 December 2025, the latest arbitrage metric stood at 255 bps, broadly in line with the level observed in January 2025. However, the current backdrop is less favourable than it was in late January.
Independent, clear, and trusted — CLO Research Group provides actionable insights for CLO debt and equity investors.
As at 16 December 2025, the latest arbitrage metric stood at 255 bps, broadly in line with the level observed in January 2025. However, the current backdrop is less favourable than it was in late January.
The EU CLOs’ overall exposure to the Ineos Quattro Term Loans is sizable at close to EUR 1.8 billion. As of 12 December 2025, 530 EU CLO deals (from 54 managers) reported an average deal-level exposure of around 85 bps.
In aggregate, US CLO managers have reduced their exposure to First Brands loans by around $1.0 billion, while EU CLO managers have reduced theirs by around €282 million. That said, some managers saw an increase in exposure as a result of DIP new money.
A sample of 1,581 US BSL CLO deals (vintage 2013–2024) is included in this study. Deals with a collateral pool...
This article examines when it is typically a good time to enter the CLO mezzanine market.
Last Thursday saw a remarkable surge in activity, with around US$1.5 billion of US CLO AAAs traded across 62 tranches — averaging around US$24 million per line item and underscoring the market’s deep liquidity.
Some of the larger top-performing US CLO managers include Allstate Investment Management, Oak Hill Advisors, L.P., CVC Credit Partners, BlackRock Financial Management, Benefit Street Partners, Onex Credit Partners, Sixth Street, and CIFC Asset Management. These managers have continued to demonstrate solid performance since early September, despite an increasing number of individual credits seeing sharp declines in bids below the 70 threshold in recent weeks.
With idiosyncratic risks continuing to erode collateral value, Redding Ridge Asset Management, GoldenTree Asset Management, and Bridgepoint Group remain among the leading EU CLO managers in terms of MVOC performance, reflecting their stronger collateral preservation relative to peers.
EU CLOs’ overall exposure to Altice Financing term loans (E+500 bps) and bonds stands at around EUR 1.2 billion (loans: EUR 0.47bn; bonds: EUR 0.72bn). As at 2 December 2025, 354 EU CLO deals (from 44 managers) reported an average deal-level exposure of approximately 90 bps.
Below are tables presenting the MVOC (AAA-B) and EQ NAV of US BSL CLO deals by vintage, based on asset prices as of December 1, 2025.
The recent accretive reset of Regatta XXVI Funding reduced its WACC by 81 bps, from 242 bps to 161 bps, and extended its reinvestment period by two years. The deal was originally priced in late 2023 with a closing date of 12 December 2023. Since its first reporting date in March 2024, its collateral weighted-average spread has declined by 58 bps, from 372 bps to 314 bps.
Looking at selected BSL CLO BB tranches traded via BWIC since 27 October, the table below summarise the benchmark (top-tier)...
The US CLOs' overall exposure to the Kronos Acquisition Holdings Inc (KIK Custom Products) First Lien Term Loan appears to...
A sample of 537 EU CLO deals (vintage 2013–2024) is included in this study. Deals with a collateral pool factor below 60% are excluded.
Some of the larger top-performing US CLO managers include Allstate Investment Management, Oak Hill Advisors, L.P., CVC Credit Partners, BlackRock Financial Management, Benefit Street Partners, Onex Credit Partners, and CIFC Asset Management. These managers have continued to demonstrate solid performance since early September, despite an increasing number of individual credits seeing sharp declines in bids below the 70 threshold in recent weeks.
