Palmer Square Capital Management Set to Launch First European CLO ETFs
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.
Palmer Square Capital Management, un gestore di asset focalizzato sul credito con oltre 33 miliardi di dollari di attivi in gestione, annuncia l'intenzione di lanciare tre ETF innovativi per investitori istituzionali europei all'inizio del 2025. Due ETF saranno focalizzati in modo passivo su debito CLO AAA e AA denominato in EUR e USD, mentre il terzo sarà un ETF multi-strategia attivo simile alla loro offerta negli Stati Uniti.
Gli ETF mirano a fornire preservazione del capitale puntando su asset resistenti ai cicli con zero default storici. L'ETF attivo offrirà una soluzione con gestore unico per la costruzione del portafoglio attraverso crediti corporate e strutturati. I prodotti passivi sfrutteranno l'esperienza di Palmer Square nei tranches senior dei CLO, utilizzando i loro benchmark proprietari confidati da istituzioni a livello globale.
Palmer Square Capital Management, un gestor de activos enfocado en crédito con más de 33 mil millones de dólares en activos bajo gestión, anuncia planes para lanzar tres ETFs pioneros para inversores institucionales europeos a principios de 2025. Dos ETFs se enfocarán pasivamente en deuda CLO AAA y AA denominados en EUR y USD, mientras que el tercero será un ETF multi-estrategia activo similar a su oferta en EE. UU.
Los ETFs buscan proporcionar conservación de capital al dirigirse a activos resilientes a ciclos con cero defaults históricos. El ETF activo ofrecerá una solución de un solo gestor para la construcción de carteras en crédito corporativo y estructurado. Los productos pasivos aprovecharán la experiencia de Palmer Square en tramos senior de CLO, utilizando sus benchmarks propietarios que son de confianza para instituciones a nivel mundial.
팔머 스퀘어 캐피탈 매니지먼트, 330억 달러 이상의 자산을 관리하는 신용 중심 자산 관리자, 2025년 초 유럽 기관 투자자를 위한 세 개의 혁신적인 ETF 출시 계획을 발표했습니다. 두 개의 ETF는 EUR 및 USD로 표시된 AAA 및 AA CLO 부채에 수동적으로 집중할 것이며, 세 번째 ETF는 미국의 제안과 유사한 능동적인 다전략 ETF가 될 것입니다.
이 ETF들은 역사적으로 제로 디폴트를 가진 사이클 저항 자산을 목표로 하여 자본 보존을 제공하는 것을 목표로 하고 있습니다. 능동 ETF는 기업 및 구조화된 신용 전체에 걸쳐 포트폴리오 구성을 위한 단일 관리자 솔루션을 제공합니다. 수동 제품은 전 세계 기관에 신뢰받는 고유 벤치마크를 활용하여 팔머 스퀘어의 선임 CLO 트랜치에 대한 전문성을 활용합니다.
Palmer Square Capital Management, un gestionnaire d'actifs axé sur le crédit avec plus de 33 milliards de dollars d'actifs sous gestion, annonce des plans pour lancer trois ETFs novateurs pour les investisseurs institutionnels européens au début de 2025. Deux ETFs se concentreront passivement sur la dette CLO AAA et AA libellée en EUR et USD, tandis que le troisième sera un ETF multi-stratégies actif, similaire à leur offre américaine.
Les ETFs visent à fournir une préservation du capital en ciblant des actifs résilients aux cycles avec zéro défaut historique. L'ETF actif offrira une solution à gestion unique pour la construction de portefeuilles dans le crédit d'entreprise et structuré. Les produits passifs tireront parti de l'expertise de Palmer Square dans les tranches senior de CLO, utilisant leurs repères propriétaires qui sont valorisés par les institutions à l'échelle mondiale.
Palmer Square Capital Management, ein kreditfokussierter Vermögensverwalter mit über 33 Milliarden Dollar an verwalteten Vermögen, kündigt Pläne an, Anfang 2025 drei innovative ETFs für europäische institutionelle Investoren auf den Markt zu bringen. Zwei ETFs werden passiv auf USD- und EUR-denominierte AAA- und AA-CLO-Schulden fokussiert sein, während der dritte ein aktiver Multi-Strategie-ETF sein wird, der dem US-Angebot ähnelt.
Die ETFs zielen darauf ab, Kapitalerhalt zu bieten, indem sie sich auf zyklusresistente Vermögenswerte mit null historischen Ausfällen konzentrieren. Der aktive ETF wird eine Einzelmanager-Lösung für die Portfoliokonstruktion im Bereich Unternehmens- und Strukturiertes Kreditgeschäft bieten. Die passiven Produkte werden auf Palmer Squares Fachwissen bei den Senior-CLO-Tranchen zurückgreifen und deren proprietäre Benchmarks nutzen, die von Institutionen weltweit vertrauenswürdig sind.
- 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
- None.
Insights
Palmer Square's entry into the European ETF market with CLO-focused products is a strategic move that capitalizes on the growing institutional demand for structured credit investments. The launch of three ETFs - two passive and one active - targeting AAA and AA CLO debt represents a significant expansion of accessible CLO investment vehicles in Europe.
The $33 billion AUM firm's expertise in CLOs and established track record in the US market positions them well to capture market share in Europe. The focus on high-grade CLO tranches with zero historical defaults addresses the risk-conscious European institutional investor base while potentially offering attractive yield pickup versus similarly-rated traditional fixed income.
The timing aligns with increased European investor interest in CLOs as a way to access floating-rate credit exposure and portfolio diversification. The active multi-strategy ETF particularly stands out as it could provide European investors with a comprehensive solution for credit allocation, potentially reducing the complexity of portfolio management.
This expansion signifies a notable development in the European structured credit landscape. The introduction of CLO ETFs will likely enhance market liquidity and price discovery in the European CLO sector, which has traditionally been less accessible than its US counterpart.
The focus on senior tranches (AAA and AA) is particularly strategic given the current market environment. These high-quality tranches typically offer better spread than similarly-rated corporate bonds while maintaining strong credit protection. For institutional investors seeking yield enhancement without compromising on credit quality, these products fill an important gap in the European ETF marketplace.
The proprietary benchmarks mentioned suggest Palmer Square has developed sophisticated tracking and evaluation methods for CLO performance, which could become industry standards in Europe. This infrastructure advantage, combined with their established presence in CLO markets, positions them well against potential competitors in this space.
The launch represents a significant first-mover advantage in the European CLO ETF space. While CLO ETFs exist in the US market, Europe has lacked similar easily accessible vehicles for CLO exposure. This initiative could reshape how European institutions access CLO markets, potentially leading to increased adoption of CLOs in institutional portfolios.
The combination of passive and active strategies shows market sophistication - passive products for cost-effective core exposure to senior CLO debt and an active strategy for tactical allocation opportunities. This multi-product approach mirrors successful ETF platform launches in other asset classes.
The early 2025 timeline suggests careful consideration of operational and regulatory requirements. Success here could catalyze similar products from other managers, potentially leading to a new ETF category in Europe. For investors, these products could offer a more efficient way to implement CLO allocations compared to direct investment or traditional fund structures.
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
"The launch of these ETFs in
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
For more information, please visit www.palmersquarecap.com.
About Palmer Square Capital Management
Founded in 2009 by Christopher Long, with major offices in
Media contact: palmersquare@kcsa.com
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SOURCE Palmer Square Capital Management
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