Palmer Square Capital Management to launch trio of European CLO ETFs
Palmer Square Capital Management is planning to launch three exchange traded funds (ETFs) for European institutional investors.
Beginning today (13 January), the firm is filing the Palmer Square EUR CLO Senior Debt Index ETF, focused on euro and US dollar denominated AAA and AA CLO debt.
The ETFs will include an active multi-strategy ETF providing similar exposure to PSQO, the NYSE-listed ETF currently offered in the US by Palmer Square.
Palmer Square was founded in 2009 and is a credit-focused alternative asset management firm with more than $33bn (£27.2bn) in assets under management.
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“The launch of these ETFs in Europe underscores our commitment to delivering cutting-edge solutions in complex investment environments across the globe. It is a natural extension of our global expertise in structured credit and demonstrates our ability to meet the rising market demand,” said Angie Long, chief investment officer and portfolio manager at Palmer Square.
“Leveraging our proprietary benchmarks trusted by institutions worldwide, these new products offer efficient access to a unique and compelling asset class, affirming our commitment to creating value for institutional and professional investors.”
Read more: Janus Henderson launches AAA CLO ETF in Europe
The ETFs will target cycle-resilient assets with zero historical defaults, including an actively managed multi-asset credit allocation product.
The passive products will create investable access to Palmer Square’s experience within the senior tranches of the CLO market.
“Institutional appetite for our proprietary European CLO indices and debt products further underscores the demand for these innovative ETFs. Our ability to manage and develop these products entirely in-house ensures operational independence and best-in-class execution,” said Taylor Moore, managing director and portfolio manager.
The Palmer Square ETFs are expected to be offered in Europe in early 2025.
Read more: CLO ETF market grows to $19bn
