Creditflux reveals most active European CLO managers as credit spreads fall to lowest levels since 2014

 
London, 24 July : Creditflux, the leading provider of data and intelligence on CLOs, has reported on the most active loan traders within the European CLO market this year.
June saw credit spreads reach their lowest level in three years as iTraxx Crossover hit 233 basis points (down from 418bp in 2016). To cater for the incessant squeeze on spreads, Creditflux has reported that CLO managers have traded in and out of loans with greater frequency.
 
BlackRock has been the leading loan trader among European CLO managers this year. The firm leads a pack that includes some of the largest loan managers in the industry including Ares Management, GSO Capital Partners and PGIM. BlackRock European CLOs have purchased EUR 394million of loans this year, whilst selling EUR 255 million.
 
A plethora of loans have refinanced this year and as such, CLOs have been able to respond by refinancing their liabilities. This has meant that the cost of debt has been lowered for a number of early 2.0 CLOs, enabling them to purchase the lower spread loans that are pricing today.
 
“Active management of CLO portfolios typically translates into strong returns and higher credit enhancement for investors in these funds. Our analysis shows that multi-billion asset managers and boutique credit managers have successfully implemented a high trade strategy for their CLOs,” says Creditflux editor Sayed Kadiri. 
 
Cairn CLO VII, managed by London-based Cairn Capital, led the CLO rankings during H1 2017 in terms of highest trade volumes having purchased EUR 351m worth of loans and sold EUR 14m.
A full list of rankings can be found below:
 
CLOs with the highest trade volume in 2017
 
Deal
Manager
Volume purchased (€m)
Volume sold (€m)
Cairn VII
Cairn
351
14
Dryden 48 Euro CLO
PGIM
128.3
115
BlackRock European CLO I
BlackRock
178.9
146.3
BlackRock European CLO II
BlackRock
215.7
108.7
Avoca CLO XIII
KKR Credit
153.1
70.6
Griffith Park CLO
GSO
117.2
91
Dryden 39 Euro CLO
PGIM
117.5
64.4
Dryden 35 Euro CLO 2014
PGIM
106.5
55.4
St Paul's CLO V
ICG
98.1
36
Dryden 44 Euro CLO
PGIM
91.9
50.5
 
 
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About Creditflux:
Creditflux is the leading information source worldwide for the rapidly evolving marketing for credit funds and CLOs. Creditflux publishes a monthly newsletter, online daily news and a comprehensive database of CLOs and credit returns. Creditflux has built up a loyal readership since 2001 and is the publication of choice for many market professionals including investors, dealers, brokers, analysts and service providers. In January 2016, Creditflux became part of Acuris.