Comparison of Non-Reset CLO Equity Tranches: US BSL vs EU (Vintage 2017-2020)
August 29, 2023
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US CLOs generally enjoy a competitive edge over their EU counterparts in the realm of equity distributions, primarily due to a more favorable interest rate environment in the U.S. Nevertheless, despite the disadvantage posed by the EU's lower interest rate environment, CLO deals from 2017 and 2018 in the EU display notably better NIM and first distribution metrics. These strong figures effectively offset this drawback, as highlighted by their robust annual distributions.
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