2024-04-20 05:40:00 ET
Summary
- In a stabilizing economic environment, floating-rate CLO debt offers yield and resilience, making it an attractive alternative for income-seeking investors.
- After fixed income markets rallied into early 2024 due to increasing confidence in a soft-landing economic scenario, many fixed income products now have spread levels that are converging with their post-COVID and pre-Russia/Ukraine tights.
- Notwithstanding the potential for short-term macro-driven volatility, we remain confident in the ability of CLO debt to outperform similarly rated fixed income alternatives over the near to medium term.
By Jared Feeney, CFA
In a stabilizing economic environment, floating-rate CLO debt offers yield and resilience, making it an attractive alternative for income-seeking investors. ...
Read the full article on Seeking Alpha
For further details see:
CLO Debt: A 'Higher-For-Longer' Yield-Enhancing Alternative