Approximately $311 billion worth of M&A deals have been announced and completed this year.
Managers in the CLO industry are struggling to keep up with demand and running out of things to buy.
The CLO market, worth $1.3 trillion, is facing challenges due to high demand.
The Janus Henderson B-BBB CLO ETF (JBBB10) provides exposure to floating-rate collateralized loan obligations rated from B to BBB.
The slowdown in mergers and acquisitions after borrowing costs rose has led to a decrease in leveraged loans, which is impacting CLOs.
The collateralized loan obligation (CLO) market, which is worth $1.3 trillion, is currently facing a challenge due to high demand. According to various reports, approximately $311 billion worth of M&A deals have been announced and completed so far this year. However, managers in the CLO industry are struggling to keep up with the demand and are running out of things to buy.
The slowdown in mergers and acquisitions after borrowing costs rose has led to a decrease in leveraged loans, which is impacting CLOs. The success of their strategies has created a supply-demand imbalance in the market. Despite this challenge, some ETFs like the Janus Henderson B-BBB CLO JBBB10 ETF continue to provide exposure to floating-rate collateralized loan obligations rated from B to BBB.
The Janus Henderson fund, managed by John Kerschner and Jessica Shill, aims to deliver investors access to securities with low default risk, low correlations to traditional fixed income asset classes and yield potential. The ETF has a net asset value of $49.03 as of June 28, 2024, and a YTD return of 5.73%.
It's important to note that while the CLO market is facing challenges, it remains an essential part of the financial landscape for many investors seeking diversification and yield potential. However, as always, it's crucial to be aware of any biases or potential conflicts of interest in your sources.
The $1.3 trillion collateralized loan obligation (CLO) market is facing a supply-demand imbalance due to the success of its strategies.
Managers can’t create bonds fast enough to meet demand, and are running out of things to buy.
A slowdown in mergers and acquisitions after borrowing costs rose has led to a decrease in leveraged loans, which is impacting CLOs.
Accuracy
]The $1.3 trillion collateralized loan obligation (CLO) market is facing a supply-demand imbalance due to the success of its strategies.[
Approximately $311 billion worth of M&A deals have been announced and completed this year, significantly less than the $1 trillion recorded two years ago when interest rates began to rise.
