Ep.125 Real Conversations → CLOs Demystified: The Hidden Engine of Yield In Credit Markets w/ Danielle Gilbert, Eldridge Capital Management

May 21, 2025

Join Danielle Gilbert, Managing Director at Eldridge Capital Management, as she unpacks the mysteries of Collateralized Loan Obligations (CLOs). With extensive expertise in structured credit, she discusses the evolving CLO landscape, the impact of macro volatility on yields, and the significance of understanding credit quality. Gilbert also highlights how institutional capital is adapting, the advantages of CLOs over traditional investments, and effective risk management strategies needed during market fluctuations. A crucial listen for investors navigating today’s credit markets!

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INSIGHT

Improved CLO Structures Post-GFC

CLO 2.0 post-GFC structures improved with far fewer defaults than corporate equivalents.
No investment grade CLO tranches have defaulted since the GFC, showing strong risk profile.

INSIGHT

CLO Yield and Correlation Benefits

CLOs offer higher yield and lower correlation than traditional corporate credit.
CLOs help dampen volatility and protect income in diversified portfolios.

INSIGHT

CLO Market Liquidity and Management

CLO market is very liquid with T+1 settlement and active trading.
ETFs invest in CLOs managed by tier one managers with focus on liquidity and quality.

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***This webcast originally aired live on Hedgeye.com on May 21st, 2025***

In this special edition of Real Conversations, Hedgeye CEO Keith McCullough hosts Danielle Gilbert, Managing Director at Eldridge Capital Management, for a high-level look into the evolving CLO (Collateralized Loan Obligation) market.

Gilbert brings deep domain expertise to break down the risk-reward calculus in today’s CLO landscape. Together, she and Keith tackle key questions around:

The health of the leveraged loan market
Shifts in credit quality and default risk
Where institutional capital is flowing—and why
How macro volatility is reshaping the search for yield

This is a must-watch for fixed-income investors and portfolio managers looking to understand how CLOs are positioned within the broader credit cycle.

Danielle Gilbert is a Managing Director at Eldridge Capital Management. Previously, she was a Managing Director for Business Development at Panagram Structured Asset Management. Prior to Panagram, Ms. Gilbert was Director in securitized product sales at RBC Capital Markets. Earlier in her career, Ms. Gilbert worked as a Managing Director and Partner at RW Pressprich, focused on the distribution of fixed income securities. Prior to RW Pressprich, Ms. Gilbert was Director in structured product sales at UBS and began her career at IBM. She received her B.S. in Industrial Engineering from the University of Illinois Urbana-Champaign.

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