CLO Research: Recent Findings on US CLO Equity Performance
A sample of 248 redeemed US CLO deals is included in the latest study.
- On average, US CLO equity IRR varies a lot by vintage.
- The best vintage is undoubtedly 2020 based on the post-2012 deals redeemed so far.
- The best vintage in terms of annual equity distribution is the 2012 vintage deals.
- The last distribution before a call averaged at around 1.9% (or 1.8% excluding 2020 deals).
- Excluding 2020 deals, the average time to a full redemption was 4.9 years.
- BBB tranches (original and refinanced) of redeemed deals registered an IRR of 5.0%, on average.
Is BB CLO tranche investment better than CLO equity on average from an IRR perspective? What percentage of redeemed deals saw their equity IRR exceeding 10% and 15.9%? Which vintage displays the worse performance so far? More details can be found in the latest premium article – A Closer Look at Redeemed US CLO Equity IRRs/Annual and Last Distribution/Time to Call by Vintage (240+ Deals).
Disclaimers
The information, research, data, research related opinions, observations and estimates contained in this document have been compiled or arrived at by CLO Research Group, based upon sources believed to be reliable and accurate, and in good faith, but in each case without further investigation. None of CLO Research Group or its service providers; authorised personnel, or their directors make any expressed or implied presentation or warranty, nor do any of such persons accept any responsibility or liability as to the accuracy, timeliness, completeness or correctness of such sources and the information, research, data, research related opinions, observations and estimates contained in this document. All information, research, data, research related opinions, observations, and estimates in this document are in draft form as of the date of this document and remain subject to change and amendment without notice. Neither CLO Research Group nor any third-party providers shall be subject to any damages or liability for any errors, omissions, incompleteness or incorrectness of this document. This article is not and should not be construed as an offer, or a solicitation of an offer, to buy or sell securities and shall not be relied upon as a promise or representation regarding the historical or current position or performance of any of the deals or issues mentioned in it.
