Palmer Square Capital Management, a leader in alternative asset management, is gearing up to revolutionize the investment landscape in Europe with the introduction of three innovative Collateralized Loan Obligation (CLO) Exchange-Traded Funds (ETFs) by the start of 2025. Established in 2009, Palmer Square has successfully managed over $33 billion in assets, focusing primarily on credit and tailored investment solutions.
As the first global issuer of CLOs, Palmer Square aims to provide European institutional investors with products tailored to the complexities of today's investment environments. This strategic move marks a significant expansion into the European market, presenting a unique opportunity for investors looking to diversify their portfolios with structured credit products.
The ETF lineup will consist of two passive funds focused on AAA and AA rated CLO debt denominated in both EUR and USD. Additionally, Palmer Square will introduce a multi-strategy active ETF, which aims to deliver flexible exposure akin to their actively managed ETF currently available in the U.S. This multi-strategy fund is designed to navigate various credit environments effectively, enhancing the potential for returns while minimizing risks associated with traditional investments.
Angie Long, the Chief Investment Officer and Portfolio Manager at Palmer Square, emphasized the significance of this launch saying, "We are committed to delivering cutting-edge solutions to our investors globally. The introduction of these ETFs aligns with our expertise in structured credit, responding to the increasing demand from the market. Our new offerings are built on our proprietary benchmarks, providing efficient access to an asset class that is not only unique but also presents great potential for value creation."
By launching these ETFs, Palmer Square is positioning itself as a vital player in the European market, focusing on capital preservation and targeting resilient assets. The ETFs are carefully curated, featuring zero historical defaults and reflect the firm’s extensive research and market insights. Moreover, with the addition of an actively managed multi-asset credit allocation product, investors will benefit from a streamlined portfolio assembly, allowing easier access to top-tier credit opportunities.
Taylor Moore, Managing Director and Portfolio Manager, pointed out the growing appetite among institutions for their proprietary CLO indices and debt offerings, stating, "The demand for our innovative ETFs underlines the market's interest in structured credit solutions. Our ability to design and manage these products in-house promises optimal operational independence and top-notch execution."
Palmer Square’s expansion into Europe with these ETFs will serve not only to broaden their reach but also to provide institutional clients with diversified investment strategies that align with their financial goals. These products are set to launch amid increasing interest in CLOs as a method to gain exposure to the credit market without the need for direct asset management.
Founded by Christopher Long in 2009, Palmer Square operates from offices in Kansas City and London, focusing on opportunistic credit, fixed-income strategies, private credit, and CLO management. They offer a variety of investment products, including mutual funds, ETFs, separately managed accounts, private partnerships, and publicly listed vehicles, such as Palmer Square Capital BDC Inc.
Investors interested in these new ETFs can expect to see them launched early next year, providing an exciting opportunity to participate in the evolving CLO market. For more information about their offerings and strategies, investors can visit
www.palmersquarecap.com.