Relative Value Across the CLO Capital Structure

The panel debates where relative value sits across the CLO capital structure. David Altenhofen favours triple B and double B tranches in Europe but notes primary markets are sluggish and secondary single Bs are unattractive. Peter Polanskyj argues for an up-in-quality bias toward IG tranches, citing unpriced fundamental risks at the bottom of the stack and compressed spreads between private credit and BSL AAAs. Shiloh Bates highlights private credit CLO double Bs as his top pick, offering around 12% yield with strong historical default protection.