KBRA UK Releases Research – European CLO Manager Style Comparisons
LONDON–(BUSINESS WIRE)–#KBRA–KBRA UK (KBRA) releases a report that examines the different strategies adopted by collateralised loan obligation (CLO) managers. These managers are often evaluated on a tiering of their portfolio based on various metrics. But this evaluation method can sometimes produce counterintuitive results and does not always consider a manager’s style and objectives. For example, should CLO managers be penalised for pursuing a more opportunistic strategy that produces a high weighted average spread, or viewed favourably if their portfolios are managed according to their objectives? In this report, we examine cross-metric comparisons that could offer insight on potential strategies employed across the market.
Key Takeaways
- KBRA’s cross-metric comparisons reveal a range of potential CLO manager styles. Using various pairings of CLO performance metrics, a particular CLO manager platform can be assessed on where it may fall on the spectrum of conservative versus opportunistic approaches to portfolio management.
- Managerial styles can vary from very opportunistic (with a large majority of cross-metric comparisons indicating an opportunistic approach) to the more conservative (with some managers having as many as eight cross-metric comparisons falling below the market average).
- Individual top 10 metric tables detailing CLO manager performance.
Click here to view the report.
Related Publications
About KBRA
KBRA is a full-service credit rating agency registered in the U.S., the EU, and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.
Contacts
Analytical Contacts
Gordon Kerr, Head of European Research
+44 20 8148 1020
gordon.kerr@kbra.com
Yee Cent Wong, Co-Head of Europe
+353 1 588 1260
yee.cent.wong@kbra.com
Gabrielle Gramazio, European Ratings
+44 20 8148 1001
gabriele.gramazio@kbra.com
Business Development Contacts
Mauricio Noe, Co-Head of Europe
+44 20 8148 1010
mauricio.noe@kbra.com
Miten Amin, Managing Director
+44 20 8148 1002
miten.amin@kbra.com