CLOs

  • European CRE CLOs set for growth as transitional real estate financing evolves

    Stabilising rates and the rise of non-bank lenders are setting the stage for European CRE CLO boom

    European commercial real estate markets are showing tentative signs of recovery as interest rates stabilise, prompting renewed appetite for structured financing.

    According to a new ‘Demystifying Credit’ report from Morningstar DBRS, this environment is paving the way for commercial real estate (CRE) CLOs to evolve from a niche product into a viable alternative to traditional CMBS structures.

    Talking Point 7 October 2025

  • SCI In Focus: IFC joins MDB securitisation push with debut emerging market CLO

    World Bank's private-sector arm prices $510mn securitisation...

    The World Bank Group, through its private sector arm, the International Finance Corporation (IFC) has closed its first securitisation transaction in what it hopes will be a series of emerging market CLOs designed to tap into private investment and free up more space on its balance sheet for further lending.

    IFC EM Securitisation 2025-1 priced on .......

    Talking Point 2 October 2025

  • CLO single-B tranches face scrutiny as first brands fallout weighs on pricing

    Poh Heng-Tan from CLO Research finds that recent BWIC activi...

    Single-B tranches, given their position as second-loss in the CLO structure, are more exposed to idiosyncratic risk and may face heightened scrutiny in the aftermath of the First Brands episode.

    In late September, a notable number of single-B tranches changed hands via BWIC, several of which carried exposure to First Brands. This has implications for MVOC and, by extension, the pricing of .......

    News Analysis 1 October 2025

  • Job swaps weekly: Crescent lures two SRT veterans

    People moves and key promotions in securitisation

    This week’s roundup of securitisation job swaps sees Crescent Capital hiring two industry veterans and credit risk-sharing specialists as md in its London office. Elsewhere, AmTrust Financial Services and Blackstone Credit & Insurance have struck a deal surrounding the spin-off of some AmTrust Managing General Agencies and fee businesses, while Orrick has snapped up an eight-person CLO team from Cadwalader Wickersham .......

    Market Moves 26 September 2025

  • Orrick poaches eight-partner CLO team from Cadwalader

    High-profile hires across London and the US mark Orrick's bi...

    Orrick is hiring an eight-person CLO team from Cadwalader Wickersham & Taft, an industry source has confirmed to SCI. It is understood the team may grow in London and the US, marking a major move to build out the firm’s structured finance practice.

    The hires in London include partners David Quirolo, Claire Puddicombe, Alex Collins and Daniel Tobias, .......

    News 25 September 2025

  • CLOs emerge as private credit's resilient outperformer

    IQ-EQ highlights diversification, liquidity, and innovation...

    CLOs have continued to prove more resilient than other parts of the private credit market, thanks to structural diversification, liquidity, and the active management style of their managers. For Joanne McEnteggart, global head of debt, capital markets and corporate at IQ-EQ, these factors explain why CLOs have consistently delivered lower default levels and stronger performance, particularly since 2018.

    The Structured Credit Interview 24 September 2025

  • CLOs steps out of manual era as Octaura modernises BWIC trading

    Octaura's new CLO trading platform looks at modernising BWIC...

    The CLO secondary market has long been plagued by efficiency and transparency problems, inhibiting its ability to scale, but electronic trading specialist Octaura hopes to change that with its new platform aiming to modernise CLO secondary trading.

    Last week, Octaura launched its multi-protocol electronic trading platform for CLOs, looking to “remedy structural issues” and unlock new growth in .......

    News 22 September 2025

  • Palmer Square static triple-A at 93 DM aligns with secondary market

    Poh-Heng Tan from CLO Research provides insight on static pr...

    Last week, Palmer Square European Loan Funding 2025-3, a static deal, priced its triple-A tranche at 93 DM with a WAL of around 1.9 years.

    On Monday, a relatively broad list of seasoned triple-A tranches changed hands; a selected set of benchmark levels, albeit in small notionals, is shown in the table below. CARPK 2021-1X .......

    News Analysis 17 September 2025

  • Palmer Square lists first European passive CLO ETF on LSE

    Shortly after debuting on German Xetra platform, Palmer Squa...

    Palmer Square has today listed its debut European CLO ETF, the EUR CLO Senior Debt Index UCITS ETF (PCL0), on the London Stock Exchange (LSE) - the first passive Euro-denominated CLO ETF available in Europe, according to the firm.

    PCL0 tracks the performance of Palmer Square's EUR CLO Senior Debt Index (ECLOSE) index offering investors exposure to Euro-denominated triple-A and .......

    News 16 September 2025

  • European CLOs post resilient performance in August, finds Fitch Ratings

    Fitch signals that European CLOs remain an attractive option...

    A new Fitch Ratings analysis of European CLOs shows broadly stable performance in August 2025, with upgrades outpacing downgrades, improving spreads for higher‐rated credits, and ongoing resilience in credit quality despite a weaker macroeconomic backdrop.

    Fitch upgraded nine CLO tranches across four transactions during August, all within the ‘BBB’ to ‘AA’ rating bands. There were no downgrades. Some .......

    News Analysis 11 September 2025

  • Secondary BWICs shed light on EU CLO single-Bs

    Recent covers highlight relative value opportunities as cert...

    Yesterday saw a fairly long list of EU CLO single-B tranches on BWIC, providing useful colour on the single-B secondary market, albeit largely in odd-lot sizes. Single-B tranches are also regarded as alternatives to CLO equity, given their expected low-teen returns and potentially lower risk profile owing to their second-loss position.

    The table below presents a sample of .......

    News Analysis 9 September 2025

  • US CLO equity IRRs show minimal divergence across strategies

    Poh-Heng Tan from CLO Research provides analysis on US CLO e...

    Against the backdrop of a strong loan market, elevated loan prices and ongoing repricing activity, many seasoned deals have been called in recent months. This study reviews a sample of 10 recently called US BSL CLOs.

    The equity tranches of these CLOs had previously appeared on BWIC, and the analysis considers how primary equity investors would have fared .......

    News Analysis 2 September 2025

  • Europe's CLO middle market sees renewed energy as private credit expands

    Previously held back by scalable collateral and complex regu...

    Private credit has become an increasingly attractive proposition for investors looking to maximize returns amid tightening spreads in public alternatives. As such, private credit CLOs have seen significant growth in recent years.

    The US private credit/middle market (PC/MM) has seen record growth this year and although there are a number of hurdles the space will need to .......

    News Analysis 2 September 2025

  • Job swaps weekly: PGGM appoints credit risk sharing leader

    People moves and key promotions in securitisation

    This week’s roundup of securitisation job swaps sees PGGM announce a new head of credit risk sharing following the departure of Mascha Canio last month. Elsewhere, Proskauer has appointed a New-York-based partner in its US structured credit practice, while S&P Global has hired a London-based md focusing on structured finance. 

    PGGM has promoted Barend van Drooge to head .......

    Market Moves 29 August 2025

  • Liquidity hurdles and secondary market gaps challenge MM CLO growth

    Regulatory limits and structural constraints weigh on expansion despite strong investor demand

    The alignment of interest between a CLO manager and the vehicle’s performance is key, according to Dan Zwirn, CEO and CIO at Arena Investors. Private credit/middle market (PC/MM) CLOs equity currently offers investors better relative value across the capital structure, he argues.

    But Zwirn says surging interest in BSL CLO equity in the last decade, driven .......

    News Analysis 26 August 2025

  • Middle market CLOs gain momentum as private credit surpasses $40bn

    Growth in PC/MM CLO issuance and tighter structures fuel optimism despite origination challenges

    Private credit and middle market CLOs (PC/MM CLOs) are beginning to gain traction in Europe after continued momentum in the US. According to data from SCI’s European and US CLO Deal Tracker, the total value of the PC/MM CLO market in 2025 has already surpassed US$40bn, putting it on track to exceed 2024’s yearly total of US$65bn.

    News Analysis 22 August 2025

  • EU tightens CLO originator standards

    The EU's clarified originator definition upends established...

    CLO risk retention for manager-originators has become more complicated after the European Commission recently clarified its definition of an originator, with a popular method of achieving compliance now ruled unsatisfactory by European lawmakers.

    The decision was announced via a response to a Q&A lodged in 2021 regarding the widespread use of conditional sales agreements by manager-originators to ‘season’ .......

    News Analysis 21 August 2025

  • Strong demand for EU CLO triple-Bs despite differing post-RP dynamics

    Poh-Heng Tan from CLO Research highlights seasoned EU CLO tr...

    This week saw a list of seasoned EU CLO triple-B bonds, all of which received covers well above par, with discount margins in a narrow range of 302–311 bps. This is despite their varying reinvestment end dates. Two bonds have passed their reinvestment period (RP) by over two years, one has just concluded its RP, and two have RPs .......

    News Analysis 21 August 2025

  • CLO triple-As above par as discount margins rise with WALs

    Poh-Heng Tan from CLO Research highlights BSL CLO triple-A t...

    Between 8 and 12 August, more than 10 BSL CLO triple-A tranches still within their non-call periods changed hands, with every bond trading above par.

    The graph below shows that, across bonds managed by managers of all tiers, discount margins (DMs) to call rose in step with weighted average lives (WALs) to call, forming an upward-sloping term curve.

    News Analysis 14 August 2025

  • CLO volatility misunderstood as credit risk, says CIFC

    Huang unpacks the real risks in CLOs, the rise of ETFs and h...

    When the Covid-driven market chaos hit in March 2020, many investors saw the sharp price moves in CLO tranches and drew the conclusion that CLOs must be a risky asset class. But that conclusion is both widespread and deeply flawed, according to Jay Huang, head of structured products investments/senior portfolio manager at New York-headquartered Talking Point 11 August 2025

  • Job swaps weekly: Aperture names global head of ABF

    People moves and key promotions in securitisation

    This week’s roundup of securitisation job swaps sees Generali Investments subsidiary Aperture appointing a new global head of asset-based finance. Elsewhere, Encina Private Credit has hired a chief commercial officer and head of originations, while Citi is bringing in a co-head of debt capital markets in Hong Kong later this year. 

    Nicholas Turgeon has joined alternative asset manager .......

    Market Moves 8 August 2025
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