The CLO market has faced a volatile start to the second quarter, after global markets sold off in response to the US administration’s unveiling of new tariffs on April 2.
In this Q&A session, LFI spoke to Erik Miller, partner, co-head and co-portfolio manager of Canyon’s CLO business.
He discusses how the CLO market has responded to broader market volatility in recent days, how he is positioning his CLO portfolios amid tariff-related risks and uncertainty, and where buying opportunities are emerging.
He also discusses the possible evolution of the CLO market in the months ahead, and what lessons he’s learnt from previous times of financial market stress.
LFI: How has recent market turmoil impacted the CLO market globally?
Erik: There have been several phenomena in the CLO market. First, Triple A spreads have blown out between 25 and 30 basis points in both the US and Europe…
