The European CLO market expansion — four managers debuting in 2025 plus a handful set to land this year — means, unsurprisingly, that the average overlap between European CLO managers has risen as well. See here for the latest manager set to enter European CLOs.
Two CLO managers have debuted in Europe this year in Diameter Capital and Elmwood Asset Management — and in the last three weeks alone 9fin has reported on five others set to join them (see here for the latest new entrant).
In our most recent European CLO portfolio overlap analysis, we looked at 2023 and 2024 vintages and the overlap was 53.68%, according to 9fin data. For this year’s overlap analysis, we expanded the data set to include 2023-2025 vintages (see the bottom of this article for methodology), and the overlap for this cohort is 57.23%, according to the latest trustee reports and 9fin data.
With overlap increasing across recent vintages, investors are placing far greater emphasis on how differentiated a manager’s portfolio truly is.
Shawn Cooper, portfolio manager at Orchard Global in London explained: "Portfolio overlap is extremely important when investing in CLOs — A CLO behaves like an index: it performs best when...
