By Bill Ebinger | ABF Global Search
Palmer Square Capital Management has reported a strong start to 2026, successfully pricing approximately $3.3 billion in US collateralized loan obligation (CLO) transactions and €1.4 billion in European CLOs during the first quarter. This activity spanned nine separate deals and underscores the firm’s ability to execute at scale across multiple markets despite continued macroeconomic challenges.
Palmer Square’s first quarter performance comes against a backdrop of persistent market volatility and ongoing geopolitical uncertainties that have impacted global credit markets. Despite these headwinds, the firm demonstrated its capacity to structure and close complex transactions on both sides of the Atlantic, reinforcing its standing as a leader in the CLO space.
The US CLO market, in particular, saw significant issuance from Palmer Square, with the firm bringing $3.3 billion to market. On the European front, Palmer Square priced €1.4 billion in CLOs, a notable achievement given the distinct regulatory and credit environments that characterize the region. The firm’s cross-market expertise and established investor relationships were key factors in navigating these complexities.
Throughout the first quarter, CLO managers have faced heightened scrutiny from investors regarding portfolio construction, underlying credit quality, and deal structure. Palmer Square’s ability to not only maintain issuance momentum but also successfully place these transactions with institutional investors demonstrates continued confidence in both the CLO asset class and the firm’s management capabilities.
Market participants have noted that the current environment requires increased flexibility and adaptability from CLO arrangers. Spread volatility, shifting investor appetite, and evolving regulatory frameworks have placed additional pressure on managers to differentiate their offerings. Palmer Square’s results suggest a well-calibrated approach to risk management and investor engagement, enabling the firm to capitalize on market opportunities as they arise.
The firm’s success in both the US and European markets reflects broader trends in global structured credit. As investors search for yield in a low-rate environment, CLOs continue to attract attention for their relative value and structural protections. Palmer Square’s first quarter achievements indicate that well-established managers with a strong track record and global reach are best positioned to benefit from these dynamics.
Looking ahead, the outlook for CLO issuance remains constructive, though market participants remain watchful of macroeconomic developments, interest rate policy shifts, and sector-specific risks within underlying loan portfolios. Palmer Square’s ability to execute at scale in such conditions is likely to further strengthen its reputation among investors and counterparties.
What This Means: Palmer Square’s strong first quarter issuance affirms the firm’s resilience and strategic positioning in the global CLO market, highlighting its capacity to meet investor demand and navigate complex market conditions. The results reinforce confidence in the ongoing health of the CLO sector for 2026 and beyond.