January 2026 CLO Docs in Review

The documentation quality, which is fairly protective, has maintained from where we left off in 2025, notably with regard to the post reinvestment criteria, portfolio profile tests, trading gains, etc. 

We are also seeing a number of provisions come into focus, such as designated excess par in refinancing, maturity amendments and weighted average life test step up condition, which continue to significantly vary across transactions.

We feature a trend report and a sample of recent transactions that we analysed.

Below is a sample of transaction reviews based on the final offering circulars in January 2026:

• Henley CLO XV, Anchorage Capital Europe CLO 13, Barings Euro CLO 2025-1, OCP Euro CLO 2017-1, CVC Cordatus Loan Fund XII, Legato Euro CLO II, Madison Park Euro Funding XIII, Neuberger Berman Loan Advisers Euro CLO 8.

Trends Report:

• Excess Par Amount Flush in European CLOs: Excess Par Amount provisions in connection with refinancing in part or in whole are now common. However, the lack of consistency and clarity in a number of transactions highlights the importance of careful documentation analysis.

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