At a glance
- Palmer Square's print also preceded a significant piece of corporate news.
- On Aug. 17, Creditflux reported the firm is exploring a sale, weighing organic and inorganic growth options.
- Direct lenders are watching that 121 bp level.
On Aug. 12, CIFC and Palmer Square each priced their third reinvesting US broadly syndicated loan CLO of 2026, Creditflux reported. Both cleared at 121 basis points; Citi and Bank of America arranged one deal apiece.
Both are reinvesting vehicles, so proceeds can be redeployed through the reinvestment period. They priced into a busy primary: on the preceding Friday, Napier Park, Post Advisory, and Blue Owl each priced a $400 million BSL CLO. That supply is running ahead of the loan market — PCD's Aug. 17 coverage put US direct lending volume below half its first-quarter pace.
Palmer Square's print also preceded a significant piece of corporate news. On Aug. 17, Creditflux reported the firm is exploring a sale, weighing organic and inorganic growth options. That a manager in the middle of a sale exploration can still bring its third CLO of the year to market suggests the franchise is functioning while the ownership question plays out.
Direct lenders are watching that 121 bp level. The next new issue will test whether it holds now that the calendar has company. Stable CLO funding costs help managers maintain loan-pricing discipline; a wider print would give CLO buyers more leverage.
Reported by the Direct Lending desk from Creditflux, Private Credit Daily, Private Credit Daily and Private Credit Daily. Published . Corrections