CLO equity market reawakens as post-tariff bids strengthen
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Poh-Heng Tan from CLO Research provides BWIC highlights on quality US BSL CLO equity tranches traded
Typically, over US$1 billion of US CLO equity notional is put on BWIC following payment dates each quarter. However, equity BWIC activity has been very limited since mid-April 2025.
With loan prices recovering to levels close to those seen before Liberation Day tariffs, a sizable equity BWIC list finally emerged last week after the April payment dates. It featured many high-quality equity tranches managed by top-tier managers such as Oak Hill Advisors, UBS AM, and CIFC.
|
|
Vintage |
Reinv End Date |
Notional |
Price (cover) |
EQ IRR (issue Px 95) |
Annual Dist |
NAV (CVR Px) |
BWIC Date |
|
RESPK 2020-1A SUB |
2020 |
Jan 15, 2030 |
8,186,250 |
55.110 |
6.8% |
14.0% |
55.1% |
May 08, 2025 |
|
OAKC 2014-10RA SUB |
2014 |
Mar 11, 2030 |
2,488,120 |
45.110 |
11.5% |
11.5% |
45.1% |
May 08, 2025 |
|
MDPK 2019-37A SUB |
2019 |
Apr 15, 2029 |
7,305,710 |
50.280 |
19.0% |
21.0% |
50.3% |
May 08, 2025 |
|
MAGNE 2020-28A SUB |
2020 |
Jan 15, 2030 |
12,198,300 |
75.060 |
15.2% |
16.8% |
75.1% |
May 08, 2025 |
|
GNRT 2022-10A SUB |
2022 |
Jan 22, 2030 |
3,000,000 |
76.161 |
16.1% |
19.6% |
76.2% |
May 08, 2025 |
|
CIFC 2021-5A SUB |
2021 |
Jan 15, 2030 |
10,086,400 |
62.910 |
9.6% |
16.0% |
62.9% |
May 08, 2025 |
|
CIFC 2020-3A SUB |
2020 |
Oct 20, 2026 |
4,711,110 |
58.110 |
15.4% |
19.6% |
58.1% |
May 08, 2025 |
|
CGMS 2021-2A SUB |
2021 |
Apr 20, 2030 |
4,730,000 |
64.100 |
13.4% |
17.6% |
64.1% |
May 08, 2025 |
One standout was OAKC 2014-10RA SUB, a 2014-vintage tranche managed by Oak Hill Advisors, which delivered an impressive IRR of 11.5% for original equity investors—well above the IRRs of most fully liquidated peers from that vintage. Notably, this bond received a higher bid on 8 May 2025 (as shown in the next table) than in both July and September last year, underscoring its resilient performance.
|
Face (original) |
Price (received) |
Due Date |
EQ IRR (issue Px 95) | |
|
OAKC 2014-10RA SUB |
2,488,120 |
45.11 |
08/05/2025 |
11.5% |
|
OAKC 2014-10RA SUB |
18,747,500 |
45.17 |
24/09/2024 |
11.2% |
|
OAKC 2014-10RA SUB |
8,000,000 |
44h |
30/07/2024 |
11.2% |
MDPK 2019-37A SUB, managed by UBS AM, achieved a primary equity IRR of 19.0%, supported by a robust inception-to-date annual distribution of around 21.0% and a strong bid of over 50.3. That said, given the wider spread environment, the cover bid received on 8 May 2025 was marginally softer than that seen in November 2024. This bond ranked top among its 2019-vintage peers traded via BWIC since July 2024.
|
Face (original) |
Price (received) |
Due Date |
EQ IRR (issue Px 95) | |
|
MDPK 2019-37A SUB |
7,305,710 |
50.28 |
08/05/2025 |
19.0% |
|
MDPK 2019-37A SUB |
1,117,970 |
58.35 |
26/11/2024 |
19.7% |
Two 2020-vintage tranches—MAGNE 2020-28A SUB and CIFC 2020-3A SUB—received decent bids, translating to primary equity IRRs of 15.2% and 15.4% respectively. While slightly below the median IRR for their vintage (based on BWIC trades since July 2024), these levels remain respectable in the current volatile market. Notably, CIFC 2020-3A SUB attracted a much stronger bid back in November 2024.
|
Face (original) |
Price (received) |
Due Date |
EQ IRR (issue Px 95) | |
|
CIFC 2020-3A SUB |
4,711,110 |
58.11 |
08/05/2025 |
15.4% |
|
CIFC 2020-3A SUB |
1,750,000 |
72.188 |
26/11/2024 |
17.6% |
Last but not least, GNRT 2022-10A SUB, managed by Generate Advisors, received a cover bid of 76.161, translating to a primary equity IRR of 16.1%. This placed the bond close to the 75th percentile among its 2022-vintage peers traded via BWIC since July 2024.
Source: SCI and CLO Research