A more objective way to evaluate a manager’s capability is by examining the inception-to-date gross annualised collateral return of their deals, measured relative to the relevant loan indices and assessed on an unlevered basis. This provides a clearer measure of true alpha generation.
Investing in CLO equity demands a thorough understanding of the asset class and a carefully considered strategic approach. As a first-loss investment, it carries inherent risks, but it also offers the potential for substantive returns. The performance of CLO equity investments is influenced by several key factors.
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.
For investors seeking experienced US CLO managers with a proven track record in navigating tough markets, these premium reports offer valuable insights into each manager's investment performance and ability to generate positive alphas in challenging market conditions.
This article endeavours to highlight some of the key drivers of 1.0 US CLO equity tranches' outperformance.
