Palmer Square Capital Management Prepares to Launch European CLO ETFs to Meet Growing Market Demand

Palmer Square Capital Management to Launch European CLO ETFs

Palmer Square Capital Management, a prominent alternative investment manager focusing on credit strategies, is gearing up to introduce three groundbreaking Collateralized Loan Obligation (CLO) Exchange-Traded Funds (ETFs). The firm, which has managed assets exceeding $33 billion since its inception in 2009, aims to expand its influence in the European market. This strategic move demonstrates Palmer Square's commitment to developing advanced investment solutions for complex market environments.

The upcoming ETFs include two passive products targeting AAA and AA-rated CLO debt denominated in euros and US dollars, alongside an actively managed multi-strategy ETF. This latter offering mirrors the active ETFs currently available in the U.S. market. According to Angie Long, Chief Investment Officer and Portfolio Manager at Palmer Square, the launch signifies both their dedication to delivering sophisticated investment strategies globally and their responsiveness to the increasing demand for innovative investment products.

By employing proprietary benchmarks widely trusted by institutional investors, Palmer Square's new ETFs promise efficient access to a compelling investment category. These products are designed to provide capital preservation by focusing on cycle-resilient assets, with historical performance free from defaults. One of the highlights of the offering is a multi-asset credit allocation product, providing a simplified solution for portfolio construction through a single manager, while facilitating enhanced access to the best relative value opportunities in both corporate and structured credit markets.

The introduction of these ETFs is a direct response to the rising institutional interest in Palmer Square's proprietary European CLO indices and debt products. Taylor Moore, Managing Director and Portfolio Manager, emphasized that this interest underlines the market demand for their innovative ETFs. Notably, the internal management and development of these products ensures operational independence and top-tier execution, setting them apart from competitors.

Scheduled for launch in early 2025, these ETFs will offer European institutional investors enhanced opportunities in the CLO space. Palmer Square's robust expertise in structured credits is poised to serve a diverse clientele, ranging from institutional investors to high-net-worth individuals.

Palmer Square Capital Management was established in 2009 by Christopher Long and maintains significant offices in Kansas City and London. As of December 31, 2024, the firm manages over $33 billion in fixed-income and credit investments, catering to a diverse client base, including institutional investors and asset managers. With a strong focus on opportunity credit, income strategies, private credit, and CLOs, Palmer Square also offers numerous product options such as mutual funds, ETFs, separately managed accounts, private partnerships, as well as its publicly traded business development company, Palmer Square Capital BDC Inc.

For more detailed information about these upcoming funds and investment solutions, interested parties can visit Palmer Square's official website. The firm is excited about this next chapter in its growth and looks forward to providing innovative financial products that meet the unique needs of European investors.