Palmer Square Capital Launches CLO Indices
First broadly distributed indices to provide benchmark for senior debt and mezzanine CLO debt.
MISSION WOODS, Kan., June 5, 2015 /PRNewswire/ -- Palmer Square Capital Management, a provider of structured credit, corporate credit and hedge fund strategies to a wide range of investors, announced that it has teamed up with the New York Stock Exchange (NYSE) as calculation agent and distributor to launch two new indices designed to benchmark the Collateralized Loan Obligation (CLO) markets.
The Palmer Square CLO Debt Index (NYSE: CLODI) and Palmer Square CLO Senior Debt Index (NYSE: CLOSE) are the first broadly distributed daily benchmarks for U.S. dollar denominated CLOs backed by broadly syndicated leveraged loans. CLOs are investment vehicles which primarily issue debt securities in individually-rated "tranches," from AAA-rated to BB-rated divided according to levels of seniority pertaining to principal and interest payments. Those debt securities are typically collateralized by a diversified pool of floating rate senior secured bank loans that are broadly syndicated.
"With a persistent low interest rate environment, many investors are turning to CLOs due to their floating rate nature and historically low default rates combined with today's yields," said Christopher D. Long, president of Palmer Square Capital Management. "Before the launch of these indices, the broad market of CLO investors, which spans from insurance companies to family offices, did not have access to a daily performance benchmark so we are pleased to provide them with the data which we believe will help them to make smarter investing decisions."
The Palmer Square CLO Debt Index is a rules-based observable pricing and total return index for collateralized loan obligation ("CLO") debt for sale in the United States, rated at the time of issuance as A, BBB or BB (or equivalent rating). Such debt is often referred to as the mezzanine tranches of a CLO.
The Palmer Square CLO Senior Debt Index is also a rules-based observable pricing and total return index for collateralized loan obligation ("CLO") debt for sale in the United States, rated at the time of issuance as AAA or AA (or an equivalent rating). Such debt is often referred to as the senior tranches of a CLO.
Palmer Square's investment team, with deep credit and alternatives experience across credit cycles, developed the proprietary methodology for calculating the indices. The NYSE serves as the calculation agent for the indices and will disseminate index values daily.
Palmer Square recently closed on its fourth CLO offering, a $435.8 million issuance with JPMorgan Securities acting as lead arranger on the transaction. Similar to three recent Palmer Square transactions, this CLO is designed to invest primarily in institutional senior secured bank loans.
About Palmer Square Capital Management
Palmer Square Capital Management provides investment advisory services and manages portfolios of corporate and structured credit, high yield municipal credit and various hedge fund strategies for a diverse set of clients across institutional investors, registered investment advisory firms, broker-dealers and high net worth individuals. As of April 30, 2015, Palmer Square managed in excess of $3.7 billion in assets.
Visit www.palmersquarecap.com.
About Montage Investments
Montage Investments provides institutional-caliber investments to investors and the financial professionals who serve them. Through a family of independent asset managers, unified by deep market insight and fundamental research, Montage offers alternative investment solutions across the spectrum of asset classes and strategies that include mutual funds, closed-end funds and separate accounts. Collectively, Montage Investments managed nearly $25 billion as of February 28, 2015.
Visit www.montageinvestments.com.
Please note: Individuals cannot invest directly in any index. Further, the securities issued under the CLO transaction noted herein have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of such securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
SOURCE Palmer Square Capital Management
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