US CLO market growth continues as Europe contracts

Carlyle and GSO dominated the latest rankings of global CLO managers produced by ratings agency Moody’s.

The US CLO market continues to grow, with total issuance reaching $45 billion in the first half, according to ratings agency Moody’s.

Even accounting for redemptions, the CLO market in the US grew by $23 billion in the first six months of the year, a far cry from the European market where redemptions and subdued issuance of €4.6 billion meant an overall decline of €8 billion.

US managers continue to dominate global league tables too. The Carlyle Group and GSO Capital Partners (part of The Blackstone Group) topped the global ranking of managers based on the number of CLOs managed and total assets under management. CIFC ranked third globally based on the number of CLOs, ahead of (in descending order) Ares, Alcentra, CSAM, Babson, CVC Credit Partners, Pramerica and Highland.

CSAM was third in the global AUM-based ranking, ahead of Ares, Highland, CIFC, Apollo, Alcentra, Babson and CVC.

In the US manager league table, CIFC managed more CLOs than any other with 29, ahead of Carlyle, GSO, Ares, CSAM, Highland, CVC, Apollo, Babson and Voya. On an AUM basis, Highland was top with $11.7 billion, ahead of CIFC, CSAM, Apollo and GSO.

In Europe, Alcentra manages the most number of CLOs with 13, alongside GSO and ahead of CELF, Avoca, ICG, 3i Debt Management, Babson, BNP Paribas, Pramerica and M&G. On an AUM basis, CELF was top with €4.3 billion, ahead of Alcentra, GSO, Avoca and 3iDM.

Of the crop of new US CLO managers, Hildene Leveraged Credit ranked top with $700 million of AUM across two CLOs, ahead of TPG Institutional Credit Partners with its $470 million CLO, Bradford & Marzec and Credit Value Partners (both $400 million), Triumph Capital Advisors ($390 million) and AXA Investment Managers ($350 million).