CLOs

  • CLOs: First-quarter data shows strong technicals keep CLO machine running, despite market strains

    Global volume reached US$141bn in 1Q26 as strong investor de...

    The global CLO market displayed a relatively strong technical in 1Q26 - despite challenging market conditions - with total volume reaching circa US$141bn, according to the latest SCI Analytics CLO Quarterly Report. After a particularly strong end to 2025, primary issuance has fallen off slightly - but far less than may have been expected, given the levels of volatility associated .......

    News Analysis 20 May 2026

  • Varde Partners prices largest CRE CLO to date at US$1bn

    Varde's latest issuance highlights renewed momentum in CRE s...

    Varde Partners has today closed its largest commercial real estate (CRE) CLO to date, pricing the US$1bn VMC 2026-FL6 transaction as investor appetite for CRE securitisations continues to recover.

    The deal marks the firm’s 13th CRE securitisation overall and is backed by loans originated through Varde’s commercial real estate lending platform. The initial collateral pool comprises 19 floating-rate .......

    News 19 May 2026

  • LMA backs UK securitisation reform as CLO market eyes regulatory reset

    Proposed FCA and PRA changes could improve efficiency and co...

    The Loan Market Association (LMA) is supporting the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) proposed overhaul of the UK securitisation regime, arguing the reforms could materially improve the operating environment for CLOs at a time when policymakers are increasingly focused on reviving the competitiveness of UK capital markets.

    In its response to the consultation, .......

    News 18 May 2026

  • SCI in Focus: AI adoption in the CLO market

    AI tools have the potential to reshape CLO workflows and dis...

    The CLO market has been grappling with the implications of AI disruption for several years, with concerns intensifying earlier this year. However, the technology also has the potential to transform CLO workflows themselves.

    The capabilities of generative AI tools, powered by large language models, are well-suited to the credit industry where analysts are required to process large volumes of .......

    Talking Point 18 May 2026

  • Secondary loan markets stabilise while primary issuance weakens

    BSL market recovery remains uneven as investors favour higher-quality loans

    The broadly syndicated loan (BSL) market showed signs of recovery last month, after a volatile start to the year shaped by geopolitical uncertainty, inflation concerns and investor anxiety surrounding artificial intelligence (AI), S&P Global reports.

    In its latest report titled ‘Secondary Markets: Loan Prices Stabilise As New Issuance Stalls’, S&P Global notes that “secondary pricing in the BSL .......

    News 18 May 2026

  • Job swaps weekly: NorthWall lands major CLO hire from Permira Credit

    People moves and key promotions in structured credit

    This week’s roundup of structured credit job swaps sees alternative credit specialist NorthWall Capital make a significant CLO market hire with the appointment of Andrew Lawson from Permira Credit. Elsewhere, Natixis CIB has announced a series of senior leadership changes across its credit markets business, while Hayfin, Mizuho and Sona Asset Management have all strengthened their private credit and .......

    Market Moves 15 May 2026

  • Kartesia set to launch first EU CLO

    Kartesia is preparing to enter the European CLO market with its inaugural Euro CLO expected in H2

    Kartesia is preparing to launch its first European CLO in the second half of the year, with Deutsche Bank acting as arranger, SCI understands.

    The move follows the recent launch of Kartesia Loan Management (KLM), the firm’s platform dedicated to investments in European leveraged loans and structured credit products. KLM has already secured more than €140 million in CLO equity .......

    News 15 May 2026

  • Manager tiering drives CLO double-B pricing as MVOC weakens

    Poh-Heng Tan from CLO Research provides BWIC colour insights on US CLO BB tranche pricing

    Using a sample of US BSL CLO BB bonds with reinvestment end dates between 2029 and 2031 that have been placed on BWIC since 14 April (with released trading colour), it is interesting to observe that both MVOC and manager tiering play an important role in pricing.

    As the loan market improves, MVOC generally strengthens, allowing BB bonds .......

    News Analysis 14 May 2026

  • Pearl Diver launches investment-grade CLO strategy to broader market

    The tranche investment specialist targets ETF competition wi...

    Pearl Diver Capital has opened its investment grade (IG) CLO strategy to the broader market, expanding the fund to a wider base of institutional investors.

    The Pearl Diver Floating Rate Investment Grade Fund has been operating since late 2024 with a smaller pool of anchor investors, offering exposure to IG CLO tranches in both the US and Europe.

    News 13 May 2026

  • Mountain Point debuts $500m CLO with systematic risk strategy

    Connecticut-based manager launches its first CLO backed by nearly 1,000 syndicated loans

    Mountain Point Credit Management recently closed on its inaugural US$500mn CLO transaction consisting of nearly 1,000 broadly syndicated loans - over double of what a traditional BSL CLO typically holds - focusing on diversity and an algorithmic approach to risk management.

    Mountain Point CLO 1 which priced in February marks the loan manager’s first foray .......

    News 12 May 2026

  • Janus Henderson's EUR AAA CLO ETF tops $500m as investors continue to favour senior credit

    The strategy becomes Europe's largest and most traded EUR AAA CLO ETF

    Janus Henderson’s EUR AAA CLO strategy has surpassed US$500m in assets, making it the largest and most traded EUR AAA CLO strategy in Europe, the firm says.

    The vehicle which launched in January last year is a floating rate active ETF offering “enhanced yield over investment grade corporates”.

    In a statement, the firm says: “This milestone .......

    News 12 May 2026

  • EU structured credit remains firm despite geopolitical strain

    ABS and CLO markets remain supported by strong demand and resilient collateral performance

    European structured credit markets continue to show resilience despite geopolitical uncertainty, with investors remaining active in ABS and CLOs despite broader macro risks and higher energy costs feeding into credit markets.

    Speaking to SCI , a market source says structured credit is reacting more slowly than other asset classes to recent market developments. “Rates markets react quickly and .......

    News 12 May 2026

  • Kartesia launches European CLO platform

    Kartesia Loan Management has raised €140m, targets leveraged loans and structured credit

    European private credit manager Kartesia has launched a new platform, Kartesia Loan Management (KLM), focused on investing in European leveraged loans and structured credit products.

    The platform has secured more than €140m in CLO equity capital, including commitments from external investors.

    Speaking to SCI, Kartesia said it aims to price between one and two CLOs annually.

    The launch comes amid continued growth in the .......

    News 7 May 2026

  • BlackRock eyes challenges and opportunities in RE CLOs

    High rates and geopolitical shocks create a double-edged sword

    BlackRock is eyeing opportunities and challenges in the real estate and construction sectors of the CLO market this year amid persistently high interest rates.

    Although early 2026 showed signs of improving economic conditions, including easing inflation, the escalation of conflict in the Middle East led the Bank of England to maintain interest rates at 3.75%, delaying progress .......

    News Analysis 6 May 2026

  • Robust 'senior secured' definitions key in CLO analysis, Fitch says

    Fitch Ratings warns weak definitions of "senior secured" deb...

    Fitch Ratings emphasises that the classification of “senior secured” debt within CLO documentation is not merely a labelling exercise, but a critical factor of recovery expectations in both initial and ongoing rating analysis.

    A robust definition ensures that an obligation is genuinely supported by sufficient pledged collateral, benefits from a first-priority claim, and is protected from material subordination.

    News 29 April 2026

  • Energy shock from Middle East conflict tests chemical CLO exposure

    Chemical sector risks and macro volatility heighten investor caution

    As the US-Iran conflict enters its 60th day with limited visibility on de-escalation, the spike in energy prices has transmitted quickly across global markets, reigniting inflation concerns and prompting a repricing along the rates curve.

    Despite these macro headwinds, broader economic spillovers have remained relatively contained. The CLO market, in particular, has continued to demonstrate resilience, supported by diversification and structural protections.

    However, .......

    News Analysis 28 April 2026

  • CLO sell-off masks technical dislocation, not credit deterioration, says CIFC

    CIFC argues recent drawdowns are driven by liquidity pressur...

    In the past twelve months, CLO markets have experienced a sharp repricing that reflects deteriorating credit fundamentals. Yet, according to Jay Huang, senior managing director and head of structured credit investments at CIFC, this narrative is potentially misleading.

    The recent drawdowns - approximately 30% over the past year and around 20% year-to-date - are driven far more by .......

    Talking Point 27 April 2026

  • Spring surge drives CLO equity BWIC, but IRRs lag distributions

    Poh-Heng Tan from CLO Research provides insights into last week's active CLO equity BWIC activity

    Just as the first signs of spring draw people out into the streets, an improving trading backdrop, combined with post-April payment dates, brought a wave of equity tranches into BWIC last week, with every tranche trading with released covers, SCI data shows.

    The table below shows the equity tranches that traded last week. Primary EQ IRR refers to .......

    News Analysis 27 April 2026

  • ABF leads the way in Q1 securitisation hires

    Inaugural SCI Analytics Quarterly Job Swaps Report reveals a...

    Asset-backed finance roles accounted for almost half of Q1's securitisation hires at mid-, senior- and C-suite-level, according to data captured in the inaugural SCI Analytics Quarterly Job Swaps Report.

    Recruitment in the structured credit market as a whole has started the year at a striking pace, with January and February hitting sharp figures, the busiest months in two .......

    News Analysis 24 April 2026

  • UBS CLO veteran departs

    Viral Shah exits the US$60bn platform after over a decade

    UBS CLO veteran Viral Shah has departed the firm after over a decade, SCI has learned.

    London-based Shah has exited the US$60bn platform after 11 years with the firm, where he was most recently an associate portfolio manager, sources told SCI.

    During his tenure, he managed leveraged loan portfolios and high-yield investments, starting as an associate in 2015 and advancing to .......

    Market Moves 23 April 2026

  • US CLO momentum slows after strong start to 2026

    As the market enters Q2, cautious optimism persists, though widening spreads could shape deal flow

    The US CLO market entered 2026 with robust primary issuance and sustained momentum, but nascent signs of deceleration are emerging as credit fundamentals and macro headwinds introduce greater complexity, according to this month's market review from Maples Group.

    Primary issuance volumes remained elevated at the start of the year, with approximately US$73bn in new pricing across more than 160 tranches in January .......

    News Analysis 23 April 2026
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