Palmer Square Capital Management, an investment firm specializing in corporate and structured credit, has announced a significant step in its global expansion strategy with the launch of its first European Collateralized Loan Obligation (CLO) Exchange-Traded Funds (ETFs).
This development marks a pivotal moment for the firm as it seeks to provide European investors with access to CLO markets, leveraging its expertise in credit investments.
With over $35.9 billion in assets under management (AUM), Palmer Square continues to solidify its reputation as a key player in the fixed income and credit space.
The new European CLO ETFs are designed to offer liquid, diversified investment opportunities in CLO debt, specifically targeting senior and mezzanine tranches rated AAA to BB.
These ETFs build on Palmer Square’s established CLO Indices, including the Palmer Square CLO Senior Debt Index (CLOSE) and the Palmer Square CLO Debt Index (CLODI), which have reported a decade of tracking observable pricing and total returns for CLO debt in the U.S. market.
The firm’s European indices, ECLOSE and ECLODI, extend this framework to Europe, providing a rules-based approach to pricing and performance for CLOs issued in the region.
This launch aligns with Palmer Square’s mission to deliver risk-adjusted returns through active and passive management strategies across corporate and structured credit.
Headquartered in Mission Woods, Kansas, with an office in London, Palmer Square has been a pioneer in structured credit since its founding in 2009.
The firm’s decision to introduce CLO ETFs in Europe reflects growing demand for accessible, transparent investment vehicles in the region’s credit markets.
Angie Long, Chief Investment Officer, emphasized the strategic importance of this move in a recent Bloomberg interview, noting that it positions Palmer Square to capitalize on the increasing sophistication of European investors seeking exposure to CLOs.
The ETFs are expected to offer diversification benefits and tap into the firm’s management and trading experience, making them an attractive option for institutional and high-net-worth investors.
This launch follows a series of milestones for Palmer Square, including the pricing of over $1.8 billion in CLOs in 2024 and the firm’s recognition as a 2025 Champion of Business by the Kansas City Business Journal.
The European CLO ETFs are part of a broader strategy to expand the firm’s footprint in global credit markets, complementing its existing offerings of mutual funds, private partnerships, and its publicly traded Palmer Square Capital BDC Inc.
The BDC focuses on lending to privately held U.S. companies, further diversifying the firm’s portfolio.
Recent market activities, such as share purchases by Wells Fargo and Pandi LLC, underscore investor confidence in Palmer Square’s growth trajectory.
The introduction of these ETFs comes at a time when CLOs are gaining traction as a resilient asset class, offering attractive yields in a volatile economic environment.
However, broker recommendations, such as Oppenheimer’s downgrade of PSBD to “Market Perform,” suggest cautious optimism about short-term performance, highlighting the need for investors to carefully assess market conditions.
Despite this, Palmer Square’s long-term outlook remains strong, driven by its client retention rate of 95% and a team of 31 investment professionals led by industry veterans Christopher and Angie Long.
As Palmer Square continues to focus on its business operations, its European CLO ETFs represent a bold step toward democratizing access to structured credit.
By combining rigorous index methodologies with active management, the firm is positioned to meet the needs of global investors, reinforcing its leadership in the credit investment landscape.