EU CLOs: Impact on Equity Distributions from Funding Delayed-Issuance Single-B Tranches
The following EU CLO deals issued and priced their single-B tranches this year. These were initially structured for delayed issuance...
The following EU CLO deals issued and priced their single-B tranches this year. These were initially structured for delayed issuance...
Discover the main disparities between the seasoned US BSL and EU CLO equity tranches in relation to annual distributions and final equity net asset value (NAV) realisation values necessary to achieve a 12.0% internal rate of return (IRR) target. Explore the reasons why median EU CLO equity tranches have shown higher annual distributions compared to their US equivalents.
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This article endeavours to highlight some of the key drivers of 1.0 US CLO equity tranches' outperformance.
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.
