Private credit and middle market CLOs – Market evolution

Portfolio Composition: Europe vs. US and the Role of Leverage

The panel compares European and US private credit CLO portfolios, noting the US market's greater diversity and higher leverage norms. The US market is segmented into upper, core, and lower middle market. Panellists discuss how lower European diversity is offset by higher asset spreads and greater liability subordination, and how manager-level due diligence is critical in private credit.

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