Craig Nicol
Managing Director, Head of Global Credit Strategy
Jacob Walton
Portfolio Manager, Co-Head of European CLOs
Ludovic Walter
Portfolio Manager, Co-Head of European CLOs
Executive Summary
Scepticism around CLO equity has grown alongside its rising visibility, but we believe much of that scepticism reflects the asset class’s transparency rather than any deterioration in its fundamentals.
This paper sets out the long-term evidence behind European CLO equity, the structural advantages it holds over private equity and private credit, and why manager selection is becoming the single biggest driver of dispersion in outcomes.
At its core, our view is simple:
CLO equity remains structurally well-positioned, but as dispersion widens, the gap between the best and worst managers will define who benefits.
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