June 16, 2024

Andrii Dodonov

CLOs rallied strongly in December, ending 2023 with a ten.54% return. The present backdrop suggests CLOs are properly positioned to start out 2024.

The VanEck CLO ETF (CLOI) returned 2.06% within the fourth quarter, and 9.37% for the yr, outperforming investment-grade bonds

Asset class 2023 Calendar 12 months Return (%) This autumn 2023 Return (%) Yield to Worst (%) Spreads (bps)
CLOs 10.54 2.69 6.33 219
AAA 8.68 2.18 5.74 148
AA 10.86 2.60 6.00 215
A 13.35 2.89 6.57 271
BBB 17.66 4.65 8.04 409
BB 24.52 7.33 12.41 850
Funding Grade Corporates 8.40 7.91 5.15 104
U.S. Agg 5.39 6.58 4.60 45
Leveraged Loans 13.17 2.79 8.93 354
Excessive Yield Bonds 13.46 7.06 7.69 339

Common Annual Complete Returns* (%) as of December 31, 2023
1 Month 3 Month YTD 1 12 months 3 12 months 5 12 months 10 12 months LIFE 6/21/2022
CLOI (NAV) 0.81 2.06 9.37 9.37 8.28
CLOI (Share Worth) 0.66 1.81 8.93 8.93 8.20
J.P. Morgan Collateralized Mortgage Obligation Index 1.09 2.69 10.54 10.54 8.65