Rated note feeders (RNF) and collateralized fund obligations (CFO) have gained significant momentum in 2025, already breaking all other issuance records. The growth reflects strong adoption from investors as an effective yet customizable way to access alternative assets and for alternative asset managers (AAM) as viable fundraising tools.
This report highlights the key trends shaping both structures, their rating stability despite credit cycle concerns, and our expectations for the remainder of 2025. Given the interchangeable terminology and similarities, KBRA defines each product below. For a more detailed breakdown, see our prior RNF and CFO research.
- RNFs are debt instruments issued by a feeder vehicle that invests…