CLO Research – Start The Week (4 Oct 2021)
CLO Research has recently published the latest ranking table based on US CLO Managers’ AUM. The ten largest managers represent over a quarter of the US CLO market. The 25 largest managers collectively manage over $420 billion of CLO assets and represent half of the US CLO market!
Presumably, most debt investors would have exposure to these large managers. It is understandable that debt investors are always assessing potential clusters of risks. This is probably even more true as one goes up the rating categories.
Overlap analysis is one key area that investors would focus on. How much diversification does one actually get from buying multiple deals issued by the same manager in any particular vintage?
Apparently, the average overlap between deals managed by the same manager for each vintage could vary quite significantly from one manager to another due to different styles of management. For example, looking at the 25 largest US CLO managers’ 2018 vintage deals, the range of overlap between deals managed by the same manager could range from 57% to 96%!
CLO Research has also published the latest ranking table on US Middle-Market CLO managers based on their CLO AUM.
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 each case without further investigation. None of CLO Research Group or its service providers; authorized 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 of their 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.
