-

KBRA Releases Research – European CLO Manager Style Comparisons: March 2025 Update

LONDON--(BUSINESS WIRE)--Collateralised loan obligation (CLO) manager styles or approaches to investing in a pool of leveraged loans can vary significantly across managers. In the end, investors are best positioned to determine which manager’s approach best suits their needs. As part of KBRA’s series examining European CLO manager styles, this report provides an update to our April 2024 analysis, highlighting changes since our last publication and focusing on the differences between CLO managers when evaluated across selected cross-metrics. The governing classifications are Opportunistic and Conservative; however, these classifications are not intended to imply any positive or negative sentiment. Rather, they are used solely for information purposes to display and distribute the data.

Key Takeaways

  • Turnover among manager rankings has remained elevated over the past 11 months, with five managers from the previous update retaining their positions in the top 10 most opportunistic group. Among the new entrants, CIFC, Arini, and Accunia each moved up more than 17 positions in the rankings. Notably, Accunia advanced 27 spots, driven primarily by a relatively higher weighted average spread (WAS) and greater percentage of assets rated CCC or lower.
  • Three managers—Redding Ridge, Fair Oaks, and M&G—have retained their stance in our most conservatively leaning manager list since April 2024, with Redding Ridge consistently appearing in the top 10 since June 2022.
  • Among the seven new entrants to the conservative cohort, Bridgepoint and Blue Ray—previously part of the most opportunistic leaning group—each migrated over 50 positions towards the conservative end. We observe that the shift in both managers’ rankings was fuelled by a relatively lower WAS, equity yield, and KBRA weighted average rating factor (K-WARF).
  • With moderately leaning managers typically subject to greater ranking volatility due to their mid-range positioning, only Permira remained in the most balanced group compared to our last update. Among the new entrants, King Street migrated from the opportunistic leaning cohort, due to a comparatively lower WA equity yield and higher percentage of senior secured loans. Conversely, MV Credit, Ostrum, and CQS, shifted from the most conservative group, with MV Credit and Ostrum showing relatively higher K-WARF and WAS, while CQS exhibited an increase in WA equity yield and leverage.

Click here to view the report.

Recent Publications

About KBRA

KBRA, one of the major credit rating agencies, is registered in the U.S., EU, and the UK. KBRA is recognized as a Qualified Rating Agency in Taiwan, and is also a Designated Rating Organization for structured finance ratings in Canada. As a full-service credit rating agency, investors can use KBRA ratings for regulatory capital purposes in multiple jurisdictions.

Doc ID: 1008899

Contacts

Gabriele Gramazio, Senior Director
+44 20 8148 1001
gabriele.gramazio@kbra.com

Brajean Ramos, Senior Analyst
+1 646-731-2417
brajean.ramos@kbra.com

Eric Hudson, Senior Managing Director, Co-Head of Global Structured Credit
+1 646-731-3320
eric.hudson@kbra.com

John Hogan, Co-Head of Europe, Ratings General
+353 1 588 1191
john.hogan@kbra.com

Media Contact

Adam Tempkin, Senior Director of Communications
+1 646-731-1347
adam.tempkin@kbra.com

Business Development Contacts

Mauricio Noé, Co-Head of Europe
+44 20 8148 1010
mauricio.noe@kbra.com

Miten Amin, Managing Director
+44 20 8148 1002
miten.amin@kbra.com

Kroll Bond Rating Agency, LLC

Details
Headquarters: New York City, New York
CEO: Jim Nadler
Employees: 400+
Organization: PRI

Release Versions

Contacts

Gabriele Gramazio, Senior Director
+44 20 8148 1001
gabriele.gramazio@kbra.com

Brajean Ramos, Senior Analyst
+1 646-731-2417
brajean.ramos@kbra.com

Eric Hudson, Senior Managing Director, Co-Head of Global Structured Credit
+1 646-731-3320
eric.hudson@kbra.com

John Hogan, Co-Head of Europe, Ratings General
+353 1 588 1191
john.hogan@kbra.com

Media Contact

Adam Tempkin, Senior Director of Communications
+1 646-731-1347
adam.tempkin@kbra.com

Business Development Contacts

Mauricio Noé, Co-Head of Europe
+44 20 8148 1010
mauricio.noe@kbra.com

Miten Amin, Managing Director
+44 20 8148 1002
miten.amin@kbra.com

Social Media Profiles
More News From Kroll Bond Rating Agency, LLC

KBRA Assigns Preliminary Ratings to GS Mortgage-Backed Securities Trust 2026-DSC1 (GSMBS 2026-DSC1)

NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to 6 classes of mortgage-backed certificates from GS Mortgage-Backed Securities Trust 2026-DSC1 (GSMBS 2026-DSC1), a $301.8 million RMBS transaction sponsored by Goldman Sachs Mortgage Company (Goldman Sachs) solely backed by collateral underwritten to debt-service coverage ratio (DSCR) guidelines. The underlying pool ($301.8 million), comprising 1,331 rental property mortgages as of the February 1, 2026 cut-off date. The mortgage loan...

KBRA Assigns Preliminary Ratings to ME Funding, LLC, Series 2026-1 Senior Secured Notes

NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to ME Funding, LLC, Series 2026-1 (Massage Envy 2026-1), a whole business securitization (WBS). Massage Envy 2026-1 represents the Issuer’s third securitization following the establishment of the master trust in 2019. KBRA anticipates withdrawing the ratings on the Issuer’s Series 2024-1, Class A-1-VFN, Class A-1-LR and Class A-2 Notes in conjunction with the issuance of the Series 2026-1 Notes, whose proceeds are being used to fully r...

KBRA Assigns Preliminary Ratings to Sequoia Mortgage Trust 2026-3 (SEMT 2026-3)

NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to 102 classes of mortgage pass-through certificates from Sequoia Mortgage Trust 2026-3 (SEMT 2026-3), a $384.7 million prime RMBS transaction. The pool is comprised of 305 first-lien, fully amortizing fixed rate mortgages with mostly 30-year maturity terms. The collateral is characterized by a weighted average (WA) original credit score of 782 and moderate borrower equity, with a WA original LTV of 71.8% and WA original CLTV of 71.8%....
Back to Newsroom