Secondary Trading Signals a Tougher Landscape for US CLO Equity
This week saw several US CLO equity tranches trade or be talked at levels materially lower than on their previous BWIC dates.
This week saw several US CLO equity tranches trade or be talked at levels materially lower than on their previous BWIC dates.
Among the top performers are Oak Hill Advisors, UBS AM, and Palmer Square Capital Management.
EU CLO equity has outperformed US CLO equity, based on BWIC colour from a sample of approximately 446 equity tranches traded since July 2024 (source: SCI). This trend is also consistent with findings from 2.0 CLO deals that have been fully liquidated to date, according to CLO Research.
EU CLO managers such as KKR, Partners Group, Alcentra, RRAM, Whitestar, Oaktree, Anchorage, and Five Arrows have performed well in resetting their outstanding deals.
This study examines a sample of 218 deals from 2015 to 2019, utilising the Morningstar European Euro-Denominated Loan Index as...
Please see the table below for the list of US BSL CLO managers and the average percentile across at least 10 of their deals, based on asset prices as of May 28, 2024. It is also interesting to note that managers with a primary CLO blended DM print of below 190 bps are represented across the performance percentiles.
