More deals are expected to be redeemed in 2024, which is already set to be the year when a record number of EU deals will be fully redeemed. The average annual default rate for the 26 deals redeemed since October 2023 stands at 0.6%.
Since October 2023, at least 26 EU CLO deals have been redeemed. The graphs below illustrate the relationship between the...
Please refer to the table below for the equity IRRs of the list of redeemed EU CLO deals year-to-date. Notably, Palmer Square European Loan Funding 2022-3,...
In essence, this deal functioned as a classic principal-driven CLO, aiming to generate returns primarily through asset price appreciation rather than ongoing income. This strategy effectively capitalized on market volatility, leading the deal to perform as expected as the loan market rallied.
The table below presents key performance metrics for 30 fully redeemed EU CLO deals, including time to call, estimated equity IRRs, annual distributions, final equity NAVs, and underlying portfolio annual default rates.
Regarding defaults, this deal experienced only three defaults since its inception, translating to an approximate 0.14% default rate per annum. If you are an investor in the CLO market, we would like to invite you to register with us using your business email address in order to gain access to our freemium service.
