Octus, a credit intelligence and data provider for leading buy-side firms, investment banks, law firms, and advisory firms, has released its comprehensive recap of the collateralized loan obligation (CLO) market for the first half of 2025. The company also introduced its CLO League Tables, providing rankings data of top participants across the U.S. and European markets to enhance transparency and analytical capabilities.
Hugh Minch, Managing Editor, CLO Insights at Octus, stated that the first half of 2025 presented a complex and dynamic landscape for the CLO market, characterized by significant volatility, evolving policy shifts, and strategic global reallocations. He noted that the in-depth analysis offers critical clarity amidst these challenges, and the CLO League Tables deliver unprecedented insight into manager and arranger activity, enabling more informed decisions.
Key trends and developments identified by Octus data from H1 2025 include market volatility sparked by tariff announcements, particularly the U.S. tariff announcement in April. This led to a sharp selloff in the leveraged loan market, with transportation, home furnishings, and automotive sectors experiencing the largest average loan price declines in the U.S. CLO liabilities widened sharply but retraced most losses after a tariff pause, creating buying opportunities as spreads reset. Another trend is global reallocation, with U.S. investors actively shifting capital into European CLOs, especially equity and mezzanine tranches. This is driven by relative value, wider liability spreads, higher modeled equity returns, and perceived macro stability, contributing to expectations of strong issuance volumes through early July. Octus also observed a divergence in fundamentals and pricing; despite modest improvements in interest coverage ratios, CLO portfolio revenue growth in Q1 U.S. declined to 4.74% from 6% in Q4 2024, and net leverage slightly increased in Q1 2025. This highlights the growing importance of manager quality and defensive positioning as idiosyncratic risk rises. Finally, surging insurance demand amid regulatory uncertainty was noted, with insurers increasing CLO allocations by $14 billion in the past year, making CLOs over 6% of life insurers’ balance sheets. This demand, particularly for AAA and AA-rated tranches, is driven by capital efficiency and low duration risk, though proposed NAIC changes could reshape CLO tranche allocations, potentially pushing investors higher up the capital stack.
Octus has also expanded its global CLO team, adding dedicated coverage and support for the market. Adelene Lee, Executive Editor, Global Credit Initiatives, emphasized that this expansion, with eight editorial members based in London and New York, aligns with the company’s strategy to cover all segments of the global credit market and highlights its expertise in an attractive credit segment.
The expansion supports the launch of the comprehensive CLO League Tables, which provide granular insights into manager performance across U.S. and European markets. Top Global CLO Managers (U.S. and Europe) include Blackstone ($58.88bn), Apollo [Redding Ridge] ($52.32bn), Carlyle ($48.64bn), Golub ($42bn), and BlackRock ($40.71bn). Top CLO Arranging Banks (Global) are Bank of America ($38.41bn), Citi ($26.72bn), BNP Paribas ($25.1bn), JPMorgan ($24.13bn), and Morgan Stanley ($21.78bn). Leading U.S. BSL CLO Managers include Blackstone ($39.17bn), Carlyle ($36.55bn), Apollo [Redding Ridge] ($31.59bn), UBS Asset Management ($30.33bn), and CIFC Asset Management ($29.86bn). Top U.S. Private Credit CLO Managers are Golub ($29.16bn), Antares ($13.28bn), Apollo [Redding Ridge] ($7.76bn), AllianceBernstein ($7.67bn), and BlackRock ($7.51bn). For European CLO Managers, the top five are CVC (€13.46m), Blackstone (€11.6m), Apollo [Redding Ridge] (€11m), KKR (€10.11m), and BlackRock (€9.93m). Top U.S. BSL CLO Arranging Banks are Bank of America ($32.02bn), Citi ($18.99bn), JPMorgan ($14.93bn), Wells Fargo ($14.32bn), and Morgan Stanley ($13.61bn). Leading U.S. Private Credit CLO Arranging Banks are Wells Fargo ($5.97bn), BNP Paribas ($5.34bn), Societe Generale ($4.06bn), Deutsche Bank ($3.71bn), and Natixis ($2.89bn). Finally, the Top European CLO Arranging Banks are Jefferies (€7.67m), BNP Paribas (€7.15m), JPMorgan (€6.31m), Bank of America (€5.14m), and Morgan Stanley (€4.94m).
Darren Maharaj, Vice President of Data Strategy and Development at Octus, remarked that the CLO League Tables are a significant development for the industry, providing transparent, data-driven rankings that equip investors with a powerful tool to assess manager quality and strategies, especially critical given nuanced market conditions.
Looking forward, CLO managers anticipate a busy Q3 2025, particularly in Europe, in anticipation of potential tariff reimplementation. Octus emphasizes that defensive credit selection, active portfolio management, and structural discipline will remain key priorities. CLOs continue to be an essential component in insurance portfolios, offering attractive yield, capital efficiency, and structural protection. Octus will continue to provide insights into CLO fundamentals, track insurer allocation trends, and support clients through market analytics and portfolio health checks.
Founded in 2013, Octus, formerly known as Reorg, serves as a credit intelligence and data provider. The company aids buy-side firms, investment banks, law firms, and advisory firms by integrating human expertise with technology, data, and AI tools to deliver verified intelligence for financial market decisions.
