Alternative asset manager Palmer Square Capital Management has launched what it claims to be the “first” passive euro-denominated CLO ETF for institutional investors in Europe.
The fund, Palmer Square EUR CLO Senior Debt Index Ucits ETF, is now trading on German exchange Xetra.
The ETF tracks the firm’s proprietary EUR CLO Senior Debt Index (Eclose), offering exposure to AAA- and AA-rated European CLO debt. It is also the first sub-fund of Palmer Square Ucits ICAV, an Irish umbrella fund with segregated liability between sub-funds.
The Eclose index, launched in 2024 with performance data going back to 2018, is described as a transparent, rules-based benchmark designed to support institutional investor access to European CLO senior debt.
Palmer Square Ucits ICAV is advised by Maples and Calder (Ireland) LLP, with Carne Global Fund Managers (Ireland) Limited acting as Management Company. J.P. Morgan serves as administrator, registrar and depository.
“The launch epitomises 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 Angie Long, chief investment officer and portfolio manager at Palmer Square.
Chris Long, founder and CEO, added: “As the newest addition to our global line-up of investment solutions, the ETF 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.”
“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 and portfolio manager. “The ETF will enable institutional investors to efficiently allocate to the universe of AAA and AA European CLO debt and achieve optimal market exposure with ease.”
“As the first and only passive Ucits CLO ETF tracking the performance characteristics of our Eclose index, it provides European institutional investors with an innovative and unique tool for accessing and allocating capital to this market,” said Jeremy Goff, managing director.
