CLO covenant compliance, obligor-level focus
CLO covenant monitoring sits at two layers: the underlying obligor (each loan in the warehouse or pool) and the CLO itself (OC/IC ratios, concentration limits, collateral quality tests). CapitalBridge focuses on the obligor layer: per-loan covenant packages, borrower-side reporting, automated headroom alerts, audit trail. Pair with a dedicated waterfall tool (Allvue, IntexCalc, Wall Street Office) for tranching and rating-agency models.
A CLO test passes at the portfolio level. The obligor about to break it sits three levels further down.
Strong on obligor reporting. Not a waterfall tool.
Be honest about what CapitalBridge is and is not. For waterfall structuring, payment priority modelling, and rating-agency reporting, use Allvue, IntexCalc, or Wall Street Office. For per-obligor covenant tracking, borrower-side reporting, headroom alerts, and audit trail across the underlying loans, CapitalBridge is purpose-built. Most sophisticated CLO managers run both.
CapitalBridge handles
- Per-obligor covenant packages
- Borrower-side reporting + portal
- Headroom monitoring + alerts
- Audit trail per change
- Cross-portfolio risk view
Use a dedicated tool for
- Waterfall structuring + tranching
- Rating-agency model output
- Trustee remittance reporting
Deal tests above, obligors below
One screen per payment date: the collateral-level tests rolled up, and every underlying obligor's covenant state feeding them.
Each test carries its trigger and its headroom, so tight shows before failing does, payment date after payment date, with the evidence attached per figure.
Tests with their triggers, not just their values
Each test carries its trigger and its headroom, so "tight" shows before "failing" does, payment date after payment date.
The deal tests and the underlying obligors' covenants run on the same engine, and the obligors' figures arrive through their own portal, on the seven-tier ladder.
Every loan's covenant package, self-reported
Obligors submit through their own portal, the escalation ladder chases the late ones, and each figure lands with its evidence attached.
Does CapitalBridge handle CLO covenant monitoring?+
Yes, for the compliance side: collateral-level tests (OC/IC ratios, concentration limits, collateral quality) and underlying obligor reporting. It is not a waterfall structuring tool; for tranching, payment-priority calculations and rating-agency models, dedicated CLO platforms are stronger. CapitalBridge sits alongside those, managing the obligor-level reporting and covenant tracking that feeds the structuring engine.
How does CLO monitoring differ from private credit monitoring?+
Private credit monitoring is per-facility: one borrower, one facility, one covenant package. CLO monitoring is layered: per-obligor covenants on the underlying loans, plus collateral-level tests on the CLO itself (OC ratio, IC ratio, concentration limits, weighted average rating and spread). CapitalBridge handles the obligor layer well; for full structuring, pair it with a dedicated waterfall tool.
Is Allvue stronger for CLO structuring?+
Yes, for CLO structuring and public credit workflows. CapitalBridge does not compete on waterfall structuring; it is purpose-built for compliance and reporting: per-obligor covenant tracking, borrower self-service, and the audit trail. Many CLO managers run both, and the honest comparison is on the Allvue page.