CLO managers – Consolidation and new entrants shaping the market

Manager Tiering and Pricing Dynamics

Billy Cole explains that tiering in the US CLO market has historically been more pronounced than in Europe due to the larger US loan market, but Europe is beginning to show more dispersion. Paul Roos candidly shares that despite defensive portfolio construction, Whitebox has found it difficult to compress liability spreads relative to tier-one managers, though improvement is expected.

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