US Module

On Tuesday, close to USD 200 million of US CLO equity tranches were offered on BWICs, with four majority stakes in circulation. Of these, only one majority stake traded. Market conditions remain challenging, with asset spread compression, elevated idiosyncratic risks, and several tranches attracting bids below clean equity NAV due to longer non-call periods.

This study is based on a sample of 1,710 U.S. BSL CLO deals. Among the 112 managers included, twelve delivered strong results, with an average ranking (percentile) of 75th or higher.

This week saw several US CLO equity tranches trade or be talked at levels materially lower than on their previous BWIC dates.

The top performers include Oak Hill Advisors, UBS AM, and Oaktree Capital.

CLO equity has faced a challenging period, with ongoing asset repricing weighing on annual distributions. Still, there are bright spots in the market. For example, a majority equity stake, ARES 2023-ALF4A SUB, was recently traded via BWIC. The deal’s accretive reset, priced by Citigroup on 3 October 2025, reduced its WACC by nearly 80 bps—more than offsetting the 60 bps decline in its underlying collateral spread since inception.

Fully liquidated US CLO deals from the 2012–2015 vintages show that 2014 delivered the weakest performance, while 2012 achieved a median IRR of around 12% (assuming a 95% issue price). Across vintages, reset deals outperformed non-reset deals by approximately 2–4 percentage points based on median IRRs.

Yesterday saw several US BSL CLO and EU CLO equity tranches from the 2018–2021 and 2024 vintages trade in the secondary market.

Reset tranches have notably outperformed their non-reset counterparts, with a median outperformance of approximately 5–6 percentage points.

The top performers include Oak Hill Advisors, UBS AM, and Oaktree Capital Management.

This study is based on a sample of 1,711 U.S. BSL CLO deals. Deals that were called before May 2025, along with static deals, are excluded from the analysis.

This study is based on a sample of 1,712 U.S. BSL CLO deals. Diameter, OHA, and GoldenTree have delivered solid equity performance. In terms of AUM and performance, managers with over USD 10 billion in AUM outperformed their peers. For example, larger managers recorded a median performance percentile of 56th, compared with 43rd for mid-sized managers and 40th for those with smaller CLO platforms.

A large minority CLO equity note was on a BWIC yesterday, and the tranche traded well. The deal, originally priced with a closing date of 28 June 2023, recently completed a reset that extended its reinvestment end date from 20 July 2028 to 20 July 2030. The reset also reduced its WACC by around 74 bps, more than offsetting the decline in collateral WAS of roughly 63 bps.

Yesterday saw active trading in CLO equity. Blackstone, RBC BlueBay, Alcentra, and PGIM See Equity Tranches Stand Out in BWICs

BSP 2022-27A SUB traded and covered above par in yesterday’s BWIC (source: SCI). The deal was originally issued on 3 August 2022, and completed a highly accretive upsized reset in August 2024, extending its reinvestment end date from 20 July 2027 to 20 October 2029, with a call date of 20 October 2026.

A majority stake of GNRT 2024-16A SUB traded yesterday, covering at...