#USA #CLO ETFs #Palmer Square #Mission Woods #European Investment

Palmer Square Capital Management to Launch First European CLO ETFs

Palmer Square Capital Management, a notable player in the credit-focused alternative asset management arena, is gearing up to introduce its inaugural European ETFs that invest in collateralized loan obligations (CLOs). With over $33 billion in assets under management, this firm, founded in 2009, aims to broaden its influence on the European investment landscape.

New Product Offerings

The upcoming launch features three innovative ETFs designed especially for institutional investors in Europe. Of these, two will focus on passively managed investments in AAA and AA CLO debt, available in both EUR and USD denominations. The third ETF is intended to be an actively managed multi-strategy fund, mirroring a similar offering that is currently available in the U.S.

Angie Long, Chief Investment Officer and Portfolio Manager at Palmer Square, emphasizes this launch as a reaffirmation of their commitment to provide top-tier solutions in complex investment environments. She noted that integrating global expertise in structured credit is crucial in catering to rising demand from the market.

Advantages of the New ETFs

Palmer Square’s new ETFs are structured to ensure capital preservation by focusing on cycle-resilient assets. Notably, these assets have demonstrated zero historical defaults. The actively managed multi-asset credit product will serve as a single-manager solution, streamlining portfolio construction while providing better access to high-value opportunities across corporate and structured credit sectors.

The passive ETFs will leverage Palmer Square’s profound understanding and research capabilities within senior tranches of the CLO market, ensuring that investors gain from their extensive expertise.

Market Demand and Independence

Taylor Moore, Managing Director at Palmer Square, pointed to the growing institutional interest in their proprietary European CLO indices and debt products as a testament to the demand for these pioneering ETFs. He highlighted that the firm’s ability to manage and develop these innovative products in-house guarantees operational independence and top-notch execution standards.

Launch Timeline

The Palmer Square ETFs are scheduled to be available to European investors by early 2025, marking a significant milestone in the firm’s strategy to expand its global footprint. The introduction of these products is expected to not only cater to the specific needs of European institutions but also reinforce Palmer Square's reputation as a leader in structured credit.

About Palmer Square Capital Management

Founded by Christopher Long in 2009, Palmer Square Capital Management operates major offices in both Kansas City and London. The firm provides investment management services with a focus on various strategies, including opportunistic credit, income strategies, private credit, and CLOs. Their diverse product offerings range from mutual funds and publicly traded business development companies to private partnerships and exchange-traded funds.

For additional details about their products and strategies, visit Palmer Square Capital's official site.