Palmer Square Capital Management Set to Launch First European CLO ETFs

Rhea-AI Summary

Palmer Square Capital Management, a credit-focused asset manager with over $33 billion in assets under management, announces plans to launch three pioneering ETFs for European institutional investors in early 2025. Two ETFs will passively focus on EUR and USD denominated AAA and AA CLO debt, while the third will be an active multi-strategy ETF similar to their US offering.

The ETFs aim to provide capital preservation by targeting cycle-resilient assets with zero historical defaults. The active ETF will offer a single-manager solution for portfolio construction across corporate and structured credit. The passive products will leverage Palmer Square's expertise in senior CLO tranches, utilizing their proprietary benchmarks that are trusted by institutions globally.

Positive

• Expansion into European market with three new ETF products
• Strong market position with $33 billion in assets under management
• Products target zero-default historical assets for capital preservation
• Leverages existing proprietary benchmarks and expertise

Negative

• None.

Top global CLO issuer expands European footprint with three innovative investment products

MISSION WOODS, Kan. , Jan. 8, 2025 /PRNewswire/ -- Palmer Square Capital Management ("Palmer Square"), a credit-focused alternative asset management firm with more than $33 billion in assets under management founded in 2009, is planning to launch three pioneering ETFs for European institutional investors. Two of the ETFs will be passively focused on EUR and USD denominated AAA and AA CLO debt with the third planned to be an active multi-strategy ETF providing similar exposure to the actively managed ETF currently offered in the US by Palmer Square.

"The launch of these ETFs in Europe underscores our commitment to delivering cutting-edge solutions in complex investment environments across the globe. It is a natural extension of our global expertise in structured credit and demonstrates our ability to meet the rising market demand," said Angie Long, Chief Investment Officer and Portfolio Manager at Palmer Square Capital. "Leveraging our proprietary benchmarks trusted by institutions worldwide, these new products offer efficient access to a unique and compelling asset class, affirming our commitment to creating value for institutional and professional investors."

These ETFs will offer capital preservation by targeting cycle-resilient assets with zero historical defaults, including an actively managed multi-asset credit allocation product offering a single-manager solution to simplify portfolio construction and provide enhanced access to the best relative value opportunities across corporate and structured credit.  The passive products will create investable access to Palmer Square's deep understanding and research within the senior tranches of the CLO market.

"Institutional appetite for our proprietary European CLO indices and debt products further underscores the demand for these innovative ETFs. Our ability to manage and develop these products entirely in-house ensures operational independence and best-in-class execution," said Taylor Moore, Managing Director and Portfolio Manager.

The Palmer Square ETFs are expected to be offered in Europe in early 2025.

For more information, please visit www.palmersquarecap.com.

About Palmer Square Capital Management
Founded in 2009 by Christopher Long, with major offices in Kansas City and London, Palmer Square manages over $33 billion in fixed income/credit investments on behalf of a diverse client base inclusive of institutional investors, wealth management firms, and high net worth individuals (as of 12/31/24). The firm primarily focuses on Opportunistic Credit, Income Strategies, Private Credit, and CLOs while offering many product opportunities, including mutual funds, exchange traded funds, separately managed accounts, private partnerships, CLOs, and a publicly traded Business Development Company, Palmer Square Capital BDC Inc. (NYSE: PSBD).

Media contact: palmersquare@kcsa.com

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SOURCE Palmer Square Capital Management

FAQ

What types of ETFs is Palmer Square launching in Europe in 2025?

Palmer Square is launching three ETFs: two passive ETFs focused on EUR and USD denominated AAA and AA CLO debt, and one active multi-strategy ETF similar to their US offering.

How much assets under management does Palmer Square currently manage?

Palmer Square Capital Management currently manages more than $33 billion in assets under management.

When will Palmer Square's new European ETFs be available?

The Palmer Square ETFs are expected to be offered in Europe in early 2025.

What is the investment focus of Palmer Square's new European ETFs?

The ETFs focus on capital preservation through cycle-resilient assets with zero historical defaults, targeting senior tranches of the CLO market and multi-asset credit allocation.

How will Palmer Square's new European ETFs benefit institutional investors?

The ETFs will provide efficient access to CLO markets, simplified portfolio construction, and enhanced access to relative value opportunities across corporate and structured credit.