Palmer Square Capital Management to Launch Groundbreaking CLO ETFs in Europe

Palmer Square Capital Management Expands with New CLO ETFs in Europe

Palmer Square Capital Management, a prominent player in the credit-focused alternative asset management sector, has announced exciting plans to launch its first European CLO (Collateralized Loan Obligation) ETFs (Exchange-Traded Funds). Established in 2009, the firm now manages over $33 billion in assets and aims to respond to the growing demand from European institutional investors for sophisticated investment products.

A Strategic Move into Europe

The introduction of these three ETFs signifies a strategic expansion into the European market. Two of the ETFs will passively invest in AAA and AA-rated CLO bonds denominated in EUR and USD, while the third will function as an active multi-strategy ETF. This new product is akin to an actively managed ETF currently available in the United States and reflects Palmer Square's dedication to providing innovative solutions in complex investment environments.

According to Angie Long, Chief Investment Officer and Portfolio Manager at Palmer Square, "Launching these ETFs in Europe underscores our commitment to delivering innovative solutions worldwide. This is a natural extension of our global expertise in structured credit, and it highlights our ability to meet the increasing market demand for such products."

Innovative Investment Opportunities

These ETFs are designed to ensure capital preservation by targeting cycle-resistant assets that have recorded zero historical defaults. One of the active products listed will serve as a multi-asset credit allocation solution, simplifying portfolio construction for institutional managers. In contrast, the passive ETFs will offer accessible avenues to Palmer Square's in-depth research and insights into the senior tranches of the CLO market.

Taylor Moore, Managing Director and Portfolio Manager, highlights the institutional demand for their proprietary European CLO indices, stating, "The rising interest in these innovative ETFs reflects the market's thrust towards our unique capabilities in managing and developing these products. Our capacity to handle these fully in-house guarantees operational independence and superior execution."

Commitment to Institutional Investors

With the European CLO ETFs expected to launch in early 2025, Palmer Square is poised to strengthen its presence in a critical market for alternative investments. The firm manages diversified fixed income and credit investments for a broad client base, including institutional investors, family offices, and wealth management firms. Palmer Square's focus on opportunistic credit, income strategies, private credit, and CLOs, along with its range of product offerings (such as mutual funds, ETFs, and private partnerships), sets it apart in the financial landscape.

Through these new European offerings, Palmer Square aims to create value for institutional and professional investors by providing efficient access to a unique asset class.

For more information on Palmer Square Capital Management, visit www.palmersquarecap.com.