KBRA Releases Research – European CLO Manager Style Comparisons: April 2026 Update

20 Apr 2026 | London

KBRA releases a report that evaluates how European collateralised loan obligation (CLO) managers differ in their investment approach by comparing them across a set of standardised portfolio metrics. Specifically, we analyse managers using a series of cross-metric comparisons such as credit quality (KBRA Weighted Average Rating Factor (K-WARF)), spread (weighted average spread (WAS)), equity returns, leverage, and portfolio composition to assess how they balance risk and return. Each comparison classifies a manager’s positioning as either more “conservative,” meaning lower-risk and lower-return characteristics typically below market averages, or more “opportunistic,” meaning higher-risk and higher-return characteristics typically above market averages, with intermediate categories capturing mixed approaches. By aggregating these classifications across multiple metric pairings, the analysis provides a relative view of manager style rather than a measure of performance.

This April 2026 update builds on our September 2025 update publication by highlighting changes in manager positioning and broader market trends. In particular, while the overall market has shifted modestly towards more conservative positioning across several key metrics, differences between managers remain pronounced. The results show which managers have maintained, increased, or reduced their relative risk appetite, offering investors a clearer comparison of how strategies diverge when evaluated consistently across multiple dimensions. Therefore, the opportunistic and conservative labels are best understood as directional indicators of portfolio construction choices, rather than judgements of quality, intended to help investors differentiate manager behaviour across a common analytical framework.

Key Takeaways

Ranking changes varied across groups over the past seven months. The most opportunistic managers were relatively stable, with most remaining in the top 10 since September 2025, while the conservative and moderately positioned managers saw more turnover and movement in rankings.
In the most opportunistic cohort, eight managers remained in the top 10 from our September 2025 update. Bain and Cross Ocean now occupy the top two positions, with each advancing eight places relative to our September 2025 update. Bain’s move was driven by WAS and par build moving above the market average, while Cross Ocean’s move reflected K-WARF and par build moving above the market average. New entrants to the top 10 were Polus and Sound Point, with the latter moving from the more moderately leaning cohort, rising 21 positions in the rankings. Notably, the upward migration of Polus and Sound Point was primarily driven by total equity yield moving from below the market average to above it, with Polus also benefiting from equity leverage shifting above average.
Only three managers—Brigade, Redding Ridge AM, and Pemberton—retained their stance in our most conservatively leaning manager list since September 2025, with Redding Ridge continuing to appear in the top 10 since June 2022.
Among the seven new entrants to the most conservative cohort, Tikehau moved 25 positions towards the conservative end, while Oak Hill, Anchorage, and BlueBay each moved 20 positions. These moves reflected a more conservative stance, including lower K-WARF for Tikehau and Oak Hill, lower WAS and K-WARF for Anchorage, and lower par build and total equity yield for BlueBay.
With the more moderately leaning manager cohort typically subject to greater ranking volatility, given their mid-range positioning, only two managers—Arini and CQS—remained in this group. Among the new entrants, CVC Credit and Neuberger Berman each moved 28 positions towards the more opportunistic end, with CVC Credit exhibiting a higher K-WARF and Neuberger Berman showing a higher total equity yield. Meanwhile, Signal Capital moved 27 positions towards the more conservative end primarily driven by total equity yield, MVOC (AAA), and MVOC (BB) each moving below their respective market averages.

Click here to view the report.

KBRA Releases Research – European CLO Manager Style Comparisons: April 2026 Update

Key Takeaways

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