KBRA attended the annual CLO Conference hosted by the Loan Syndications & Trading Association (LSTA) and DealCatalyst, held at the Marriott Marquis in New York on April 27-28, 2026. The conference opened against a backdrop of increasing macroeconomic uncertainty, shaped by geopolitical volatility, evolving artificial intelligence (AI) dynamics, and an unclear Federal Reserve policy path.
While 2025 marked a record year for collateralized loan obligation (CLO) issuance, the tone across panels suggested a more cautious outlook for 2026. Participants pointed to moderating issuance expectations, a more fragile technical backdrop, and growing dispersion in credit performance. At the same time, CLO liabilities have continued to perform relatively well, underscoring the resilience of the structure and the importance of active management. Across discussions, a consistent theme emerged: Performance differentiation—across managers, sectors, and tranches—will likely define the current cycle.…
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