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The European CLO market has been growing but portfolios are looking more alike, according to 9fin analysis. Last year when we ran this analysis, the average manager overlap was 51.8%, and this has now increased to 53.68%. For this report, we look at the portfolio overlap, as per the latest European CLO trustee reports, between CLO managers for deals that closed in 2023 and 2024 (see the bottom of this article for methodology).

The increase in overlap is not entirely surprising due to the somewhat limited supply this year. As one investor stated “there has not been a lot of supply but the loan market has actually grown maybe 7-8%”. This is also balanced against the demand from new managers entering the market and a high proportion of existing managers printing new issues this year.