CLOI - Will CLOs Continue To Rally In 2024?
2024-01-26 21:55:00 ET
Summary
- The VanEck CLO ETF returned 2.06% in the fourth quarter, and 9.37% for the year, outperforming investment-grade bonds and AAA-rated CLOs.
- CLOs underperformed bank loans as well as fixed-rate high yield bonds during the year as Treasury yields declined, but outperformed investment grade corporates.
- We anticipate CLO spreads to trade in a range for the next 3-6 months and see spreads and yields attractive under most market scenarios over the next twelve months.
CLOs rallied strongly in December, ending 2023 with a 10.54% return. The current backdrop suggests CLOs are well positioned to start 2024....
Will CLOs Continue To Rally In 2024?