Palmer Square Capital Management Expands into European ETFs
Palmer Square Capital Management, a U.S.-based credit-focused asset manager, is set to make its debut in the European ETF market with three innovative strategies tailored to capitalize on collateralized loan obligations (CLOs). This strategic move aims to attract European institutional investors, and the rollout is expected to begin in early 2025.
First Offering: Palmer Square EUR CLO Senior Debt Index ETF
The flagship product of this venture will be the Palmer Square EUR CLO Senior Debt Index ETF, designed to provide investors with actively managed exposure to both euro and U.S. dollar-denominated AAA- and AA-rated CLOs. This offering is particularly timely, as the demand for CLO investment products has seen a significant uptick, driven by institutional investors seeking diversified sources of yield amid market volatility.
Expanding Product Range
Beyond the initial ETF, Palmer Square will introduce passive investment products that leverage the firm’s deep expertise in managing senior tranches of CLOs. These offerings are designed to cater to various investment strategies, allowing institutions to choose the level of active or passive management that aligns with their investment goals.
Strong Track Record
With over $33 billion in assets under management (AUM), Palmer Square has consistently demonstrated its prowess in navigating complex asset management landscapes. The firm’s existing products, including the NYSE-listed Palmer Square Credit Opportunities ETF (PSQO), serve as a testament to its successful investment strategies.
Expert Insights
Angie Long, Chief Investment Officer and portfolio manager at Palmer Square, highlighted the company’s commitment to providing innovative solutions within challenging investment environments. "The launch of these ETFs in Europe underscores our commitment to delivering cutting-edge solutions in complex investment environments across the globe," she stated.
Taylor Moore, managing director and portfolio manager, further emphasized institutional interest in their proprietary European CLO indices. "Our ability to manage and develop these products entirely in-house ensures operational independence and best-in-class execution," he remarked.
Market Landscape
Palmer Square’s upcoming launches coincide with a growing interest in CLOs within Europe. Recently, the Janus Henderson Tabula EUR AAA CLO UCITS ETF (JCLO) entered the market, and Invesco has also initiated the process to launch a pair of CLO ETFs with the Central Bank of Ireland. This suggests a burgeoning acceptance of CLOs in the European investment landscape, paving the way for innovative financial products.
Unique Value Proposition
What sets Palmer Square apart is its proprietary benchmarking approach, which is trusted by institutions globally. Their new ETF offerings not only provide access to a compelling asset class but also demonstrate a robust commitment to delivering value for both institutional and professional investors.
In this evolving financial landscape, Palmer Square Capital Management’s foray into European ETFs represents not just an expansion of their offerings but also a commitment to innovation, operational excellence, and a deep understanding of investor needs. For institutions seeking to diversify their portfolios with unique and compelling assets, the upcoming Palmer Square ETFs may well represent an opportunity worth exploring.
Stay tuned for further updates as Palmer Square Capital Management steps confidently into the European ETF market, promising to reshape how institutional investors gain exposure to CLOs.