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March 2025

CLO monthly insights 

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This month’s highlights

CLO collateral performance continues to be resilient in the face of ‘higher for longer’ short-term rates and tariff uncertainties. Junior OC cushions decreased one basis point in February despite Caa bucket levels dropping 31 basis points to 4.60%. Elevated refinancing activity continues into 2025 with 46 CLOs refi/reset in February as tighter spreads make it advantageous. There were two new loan issuer defaults in February, however each were below $110 million in aggregate exposure across U.S. Bank trusteed CLOs. The largest default was Aimbridge Acquisition held in 61 CLOs.

February’s warehouse activity picked back up following year end:

109 open warehouses, up 6 from last month:
• +12 new warehouses
• -6 warehouses, all closed CLOs


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