Palmer Square Capital Management, a US credit-focused firm, has launched a passive euro-denominated collateralised loan obligation (CLO) exchange traded fund (ETF).
The Palmer Square EUR CLO Senior Debt Index UCITS ETF (PCL0) is specifically designed for European institutional investors and provides them with exposure to AAA- and AA-rated CLO debt. The firm has previously launched similar CLO indices in the US.
It is benchmarked against Palmer Square’s EUR CLO Senior Debt Index (ECLOSE), an in-house proprietary, research-driven benchmark launched by Palmer Square in 2024.
Read more: Invesco launches two investment-grade private credit CLO ETFs
“The launch of PCL0 epitomizes the philosophy of applying our deep global credit expertise and experience to innovative, investor-driven product solutions tailored to meet the rising institutional demand for this asset class around the world,” said the firm’s chief investment officer, Angie Long.
Back in January, Palmer Square announced it was planning to launch three ETFs for European institutional investors.
“PCL0 is the first in a series of European Palmer Square ETFs providing high-quality exposure to cycle-resilient senior CLO debt, further extending global access to our recognized track record, while highlighting our distinct positioning and leadership in global credit markets,” said Chris Long, founder and chief executive.
“Our ETFs are designed to simplify portfolio construction while facilitating a superior way of gaining market exposure to the senior debt tranches of euro-denominated CLOs,” said Taylor Moore, managing director at Palmer Square.
Read more: Obra Capital prices second CLO at over $500m
Palmer Square was founded in 2009 and manages over $34.9bn (£26.2bn) in fixed income and credit investments. It primarily focuses on opportunistic credit, income strategies, private credit, and CLOs.
