Comparison of EU CLO Equity IRRs and Annual Default Rates (Updated)
Since October 2023, at least 26 EU CLO deals have been redeemed. The graphs below illustrate the relationship between the...
Since October 2023, at least 26 EU CLO deals have been redeemed. The graphs below illustrate the relationship between the...
According to Moody’s, it is anticipated that four industries will experience a default rate exceeding 4.0% within the next year. Notably, EU CLOs have a fair amount of exposure to only one out of these four industries, as illustrated in the table. Furthermore, Moody’s projects that only one industry – retail – will witness a default rate surpassing 5.0% over the course of one year. EU CLOs have limited exposure to this industry.
The implied annual default rates for US CLO managers range from 0.5% to 4.6%!