EU CLOs: Potential Candidates for Call via Liquidation
The collateral for these deals totalled approximately EUR 8.4 billion.
The collateral for these deals totalled approximately EUR 8.4 billion.
Of these 207 US CLO deals, about 63 are better positioned for redemption as they have an equity NAV exceeding 10 percentage points, based on asset prices as of February 5, 2024. Most of these deals originate from the 2017 and 2018 vintages, as indicated in the table below. Market conditions are also conducive for a call. However, the final decision rests with the equity holders.
Investing in discounted BB-rated CLO tranches can yield significant rewards in the following scenarios:
CLO deals are typically called during periods of strength in the loan market. For instance, approximately 85% of the more...
Many factors can lead to a call by CLO equity investors: When it makes economic sense to call a deal,...
