Palmer Square Capital Management Expands into European ETF Market
New Frontier: Euro-Denominated CLOs
Kansas-based asset manager Palmer Square Capital Management is set to make its European debut with three innovative ETF strategies focused on collateralized loan obligations (CLOs). This move marks a significant expansion into the European market, targeting institutional investors with a trio of ETFs slated for early 2025.
Actively Managed Exposure
The first ETF, the Palmer Square EUR CLO Senior Debt Index ETF, will provide actively managed exposure to euro and US dollar-denominated AAA- and AA-rated CLOs. This launch will be followed by passive products offering access to the firm’s expertise in senior tranches of CLOs.
AUM and Expertise
With over $33 billion in assets under management, including the NYSE-listed Palmer Square Credit Opportunities ETF (PSQO), Palmer Square brings a wealth of experience to the European market. The firm’s Chief Investment Officer and portfolio manager, Angie Long, emphasized the significance of this launch, stating, “Our commitment to delivering cutting-edge solutions in complex investment environments is unwavering. These new products offer efficient access to a unique and compelling asset class, creating value for institutional and professional investors.”
Institutional Appetite
Taylor Moore, managing director and portfolio manager at Palmer Square, highlighted the strong demand for the firm’s proprietary European CLO indices and debt products, underscoring the appeal of these innovative ETFs. “Our ability to manage and develop these products entirely in-house ensures operational independence and best-in-class execution,” Moore added.
Market Context
The upcoming launches follow the recent arrival of the Janus Henderson Tabula EUR AAA CLO UCITS ETF (JCLO) and Invesco’s filing to launch a pair of CLO ETFs with the Central Bank of Ireland (CBI). This growing interest in CLO ETFs is driven by the regulator’s expected shift in stance on exposure.
Leave a Reply