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Last week, Palmer Square European Loan Funding 2025-3, a static deal, priced its AAA tranche at 93 DM with a WAL of around 1.9 years. On Monday, a relatively broad list of seasoned AAA tranches changed hands; a selected set of benchmark levels, albeit in small notionals, is shown in the table below. CARPK 2021-1X A1 could likely have cleared at a slightly wider DM had it been a par or above-par bond.
Below are tables presenting the MVOC (AAA-B) and EQ NAV of US BSL CLO deals by vintage, based on asset prices as of 12 September 2025.
A number of AA tranches traded via BWIC last week, with covered DMs ranging from 155 bps to as wide as 191 bps. As shown in the table below, to enable a like-for-like comparison...
The reset of OCPE CLO 2023-7 for Onex Credit Partners, priced by Citi, came through impressively with its AAA tranche at 130 bps. This reset was accretive, extending the deal’s reinvestment end date from April 2028 to October 2030 and lowering its cost of funding from 218.7 bps to 195.5 bps.
The reset of Sycamore Tree CLO 2023-4 saw its AAA tranche priced at 133 bps, a competitive level relative to...
On 9 September 2025, the secondary market saw a relatively long list of US BSL CLO BB tranches on BWIC, spanning a wide range of MVOCs and reinvestment end-dates.
Notably, it is the only 2020-vintage deal with a BB MVOC below par, or a clean BB NAV of around 80%, which helps explain why the BB tranche cleared at such a deep discount.
Yesterday saw a fairly long list of EU CLO single-B tranches on BWIC, providing useful colour on the single-B secondary market, albeit largely in odd-lot sizes. Single-B tranches are also regarded as alternatives to CLO equity, given their expected low-teen returns and potentially lower risk profile owing to their second-loss position.
Below are tables presenting the MVOC (AAA-B) and EQ NAV of EU CLO deals by vintage, based on asset prices as of 5 September 2025.
Below are tables presenting the MVOC (AAA-B) and EQ NAV of US BSL CLO deals by vintage, based on asset prices as of 5 September 2025.
BBAM European CLO IV’s reset was recently priced, with its AA tranche coming in at 190 bps.
Avoca CLO XXIX was recently reset, with its AAA tranche pricing at 128 bps — the tightest among recent resets.
RRE 6 Loan Management’s reset was recently priced, with its AAA tranche at 131 bps, the tightest among its reset peers. But it still offers strong value to investors.
Please refer to the table below, which shows the 2.0 BSL CLO AUM trends for each US BSL CLO manager since 2012. The AUM (in billions of dollars) for each period is based on CLO deal pricing dates and the notional of the underlying collateral, rather than CLO liability notional. For consistency, the AUM figures for each manager have been adjusted to reflect mergers and acquisitions as well as changes in management contracts. The top ten US BSL CLO managers are Blackstone, Carlyle, UBS AM, CIFC, RRAM, Octagon, Ares, Neuberger Berman, Sound Point, and Elmwood. As of 30 June 2025, 33 managers oversaw at least $10 billion of BSL CLO AUM, with 12 of them managing $20 billion or more.
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