US BSL CLO Managers: Can CLO AUM Growth and Performance Go Hand in Hand?
Can AUM Growth and Performance Go Hand in Hand?
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Can AUM Growth and Performance Go Hand in Hand?
Some of the fastest-growing US CLO managers include AGL Credit, Elmwood AM, Blackstone, and Golub Capital.
As reported by PitchBook LCD, Tikehau plans to liquidate Tikehau CLO, its debut 2015 vehicle, which was reset in 2021.
As reported by PitchBook LCD, BlackRock is considering liquidating BlackRock European CLO VI, a 2018 vintage that exited its reinvestment period in April 2023.
How Much Tighter Can the AAA-BB Pricing Differential Get?
A sample of 1,489 US BSL CLO deals (vintage 2013–2023) is included in this study. Deals with a collateral pool factor below 55% are excluded.
A sample of 501 EU CLO deals (vintage 2013–1H 2024) is included in this study. Deals with a collateral pool factor below 60% are excluded.
Please refer to the table below for a comprehensive list of CLO managers and their global CLO collateral AUM (in USD billions), broken down by US BSL, US MM, and EU CLO AUM as of 31 December 2024. Out of 169 CLO managers, 50 oversee both US BSL and EU CLOs, while 101 manage only US CLOs, of which 43 have over USD 3 billion in CLO AUM.
Below is the full list of US CLO managers, their CLO AUM as of 31 December 2024, and their year-on-year AUM growth rates. The total US CLO AUM was estimated at $1.096 trillion by the end of 2024, reflecting an increase of approximately 5.4% over the past year. The 10 largest US CLO managers are Blackstone, Golub Capital, The Carlyle Group, CSAM, Ares Management, CIFC Asset Management, Octagon Credit Investors, PGIM, Sound Point, and BlackRock.
With the record primary and reset issuance of US CLOs in 2024, combined with numerous liquidations, the reinvestment period profiles of US CLO managers have improved significantly. On average, the percentage of CLO AUM outside of the reinvestment period decreased from 30% as of 31 December 2023 to 19% as of 31 December 2024 for the 80 managers listed in the table below.
Out of the 100 largest US CLO managers, 23 have a highly favourable CLO AUM breakdown by reinvestment period (RP), with less than 1% of their total US CLO AUM outside of RPs. Among the 50 largest managers, only 5 have less than 1% of their total CLO AUM outside of RPs.
The loan index's moving 4-week average discounted spreads are used as a proxy for the discounted spreads of US BSL CLO portfolios. On average, seasoned US BSL CLO managers have closely tracked the return performance of this loan index across all three metrics: annualized total returns, MV returns, and interest returns.
This study includes a sample of 1,494 US BSL CLO deals from vintages spanning 2013 to 2023. Deals with a collateral pool factor below 55% have been excluded. Prominent managers such as Oak Hill Advisors, Golub Capital, and Benefit Street Partners have performed very well.
A sample of 504 EU CLO deals (vintage 2013–1H 2024) is included in this study. Deals with a collateral pool...
The table below presents the discount margin differential pricing for 2.0 CLO AAA–BB tranches by vintage. Evidently, based on a sample of non-short-dated deals with available discount margin data, 2024 emerged as the year with the narrowest AAA–BB pricing differential.
