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.
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.
| Test | Level | Trigger | |
|---|---|---|---|
| OC ratio | 118.4% | 104.0% | Passing |
| IC ratio | 1.9x | 1.5x | Passing |
| Single-obligor concentration | 4.7% | 5.0% | Tight |
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.
| Obligor | Covenant | Level | |
|---|---|---|---|
| Kanzu Finance | DSCR | 1.42x | Compliant |
| Sahel Agri-Co | Leverage | headroom 6% | At-risk |
| Lakeview Microbank | DSRA | below floor | Breach |
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.