CLO performance was positive in May, driven primarily by carry as spreads tightened across the capital structure. The broader leveraged loan market also delivered modest gains, supported by loans’ floating-rate structure as Treasury yields rose, though pockets of secondary-market weakness tempered returns. Issuance activity rebounded, with both loan and CLO origination picking up, while market technicals remained supportive despite ongoing geopolitical and macro uncertainty. Overall, strong fundamentals, low default activity, and favorable supply-demand dynamics have continued to underpin the outlook for CLOs as an attractive source of income.

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For Institutional Investor use only. Past performance is not indicative of future results. All data as of month-end unless otherwise noted. This information is presented for informational purposes only. This is not to be construed as an offer to buy or sell any financial instruments and should not be relied upon as the sole investment making decision. CLO, Bank loan, corporate securities, and high yield bonds involve risk of default on interest and principal payments or price changes due to changes in credit quality of the borrower, among other risks. All material is compiled from sources believed to be reliable, but accuracy cannot be guaranteed. The opinions expressed herein are based on current market conditions and are subject to change without notice.