Palmer Square's CLO Indices Celebrate 10 Year Anniversary

Rhea-AI Summary

Palmer Square Capital Management marks the 10th anniversary of its pioneering CLO indices - the Palmer Square CLO Senior Debt Index (CLOSE) and CLO Debt Index (CLODI), launched on May 29, 2015. The company has expanded to nearly 1,000 global subscribers and recently launched a U.S. ETF (PSQA) with plans for a European product. The CLO market has grown significantly from $400 million to over $1 trillion in market value over the past decade. The CLOSE index, focused on AAA/AA-rated senior tranches, has shown consistent positive returns, with 7.40% in 2024 and 9.01% in 2023. The CLODI index, tracking A/BBB/BB-rated mezzanine tranches, demonstrated higher returns but more volatility, posting 13.22% in 2024 and 17.40% in 2023.

Positive

• Significant market growth from $400M to over $1T in CLO market value over 10 years
• Expansion to nearly 1,000 global subscribers for their indices
• Launch of new ETF (PSQA) in U.S. and planned European product launch
• Strong recent performance with CLOSE index returning 7.40% in 2024 and CLODI index returning 13.22%

Negative

• None.

MISSION WOODS, Kan., May 29, 2025 /PRNewswire/ -- Today, Palmer Square Capital Management ("Palmer Square") celebrates the 10 year anniversary of its groundbreaking CLO indices. On May 29, 2015, Palmer Square introduced the first CLO benchmarks distributed globally on a daily basis: the Palmer Square CLO Senior Debt Index (CLOSE) and the Palmer Square CLO Debt Index (CLODI).

According to Christopher D. Long, Founder, CEO and Chairman of Palmer Square, "We launched the CLO indices to provide valuable insights and access to a daily performance benchmark focused on a rapidly expanding asset class. In 2024, we expanded our offerings by launching European CLO indices. Today, nearly 1,000 global subscribers access our indices, and we recently introduced an ETF (PSQA) in the U.S. and will soon launch a similar product in Europe which allows investors to directly access the return characteristics of these indices." Below is the 10-year performance data of our trailblazing indices.

	YTD 2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
Palmer Square Senior Debt Index (CLOSE)	1.57 %	7.40 %	9.01 %	0.70 %	1.43 %	2.68 %	4.44 %	2.12 %	3.16 %	3.32 %
Palmer Square Debt Index (CLODI)	1.02 %	13.22 %	17.40 %	-3.59 %	5.11 %	6.83 %	8.82 %	0.07 %	9.13 %	10.40 %

As of April 30, 2025

"CLOs are one of the fastest growing areas of global structured credit, growing from approximately $400 million 10 years ago to more than $1 trillion in market value. Palmer Square's ability to provide daily performance indices to investors for the last decade has been a major contributor to this tremendous market growth as investors had the transparency to not only follow the CLO space, but also benchmark performance," stated Jeff Fox, President, Palmer Square.

The Palmer Square CLO Senior 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 AAA or AA (or an equivalent rating). Such debt is often referred to as the senior tranches of a CLO.

The Palmer Square CLO 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 A, BBB or BB (or equivalent rating). Such debt is often referred to as the mezzanine tranches of a CLO.

About Palmer Square Capital Management Founded in 2009 by Christopher Long, with major offices in Kansas City and London, Palmer Square manages over $34.2 billion in fixed income/credit investments on behalf of a diverse client base inclusive of institutional investors, wealth management firms, and high net worth individuals (as of 03/31/25). The firm primarily focuses on Opportunistic Credit, Income Strategies, Private Credit, and CLOs while offering many product opportunities, including mutual funds, separately managed accounts, private partnerships (including investments focused on the CLO market), CLOs, and a publicly traded Business Development Company, Palmer Square Capital BDC Inc. (NYSE: PSBD).

Past performance is not necessarily indicative of future results. It is not possible to invest directly in an index. Index performance does not reflect the deduction of any fees and expenses. There are risks involved with investing, including the possible loss of principal, that investors should be prepared to bear. The information contained herein should not be construed as personalized investment advice and should not be considered a solicitation to buy or sell any security or engage in a particular investment strategy.

This data is provided for informational purposes only and is not intended for trading purposes. This document shall not constitute an offering of any security, product or service. The addition, removal or inclusion of a security in the Palmer Square CLO Senior Debt Index and the Palmer Square CLO Debt Index (the "Indices") is not a recommendation to buy, sell, or hold that security, nor is it investment advice.

The Indices are the exclusive property of Palmer Square. The Indices are calculated by NYSE Group, Inc. or its affiliates ("NYSE"). NYSE MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND HEREBY EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO THE INDICES OR ANY DATA INCLUDED THEREIN. IN NO EVENT SHALL NYSE HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.

The securities issued under the CLO transactions 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 overview 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.

Palmer Square Capital Management LLC ("Palmer Square") is an SEC registered investment adviser with its principal place of business in the State of Kansas. Registration of an investment adviser does not imply a certain level of skill or training. Palmer Square and its representatives are in compliance with the current registration and notice filing requirements imposed upon registered investment advisers by those states in which Palmer Square maintains clients. Palmer Square may only transact business in those states in which it is notice filed, or qualifies for an exemption or exclusion from notice filing requirements. Any subsequent, direct communication by Palmer Square with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. For additional information about Palmer Square, including fees and services, send for our disclosure statement as set forth on Form ADV using the contact information herein or refer to the Investment Adviser Public Disclosure web site (www.adviserinfo.sec.gov). Please read the disclosure statement carefully before you invest or send money.

Media contact: palmersquare@kcsa.com

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SOURCE Palmer Square Capital Management

FAQ

What are the 10-year returns for Palmer Square's CLO indices (PSBD)?

The Palmer Square CLO Senior Debt Index (CLOSE) has shown consistent positive returns ranging from 0.70% to 9.01% annually, while the CLO Debt Index (CLODI) demonstrated returns ranging from -3.59% to 17.40% over the past decade.

How has the CLO market grown since Palmer Square launched its indices?

The CLO market has grown from approximately $400 million to over $1 trillion in market value over the past 10 years.

What new products has Palmer Square launched recently?

Palmer Square has recently launched an ETF (PSQA) in the United States and plans to launch a similar product in Europe.

What is the difference between CLOSE and CLODI indices?

CLOSE tracks AAA or AA-rated senior CLO tranches, while CLODI tracks A, BBB, or BB-rated mezzanine CLO tranches.

How many subscribers use Palmer Square's CLO indices?

Nearly 1,000 global subscribers currently access Palmer Square's CLO indices.