Palmer Square Capital Management, a provider of structured credit, corporate credit and hedge fund strategies, has closed on its second collateralised loan obligation (CLO) in the last six months.
Palmer Square CLO 2013-2, which closed on 17 September, is a USD464m issuance. On 15 April, Palmer Square closed CLO 2013-1 at USD362m. Both transactions were arranged by JPMorgan Chase. Both vehicles are designed to invest primarily in institutional senior secured bank loans.
Christopher D Long, president of Palmer Square Capital Management, says: "We always believed that the CLO space was a natural extension of our investment platform given our team's experience and competitive advantage in structure and credit. Leveraging these two successful offerings, we will continue to enhance our CLO platform and execute on investment opportunities across corporate and structured credit, long/short credit and other alternative strategies."
Angie K Long, chief investment officer of Palmer Square, says: "CLOs are a very efficient way for investors to access senior secured bank loans. Given the unique combination of significant floating rate yields and low credit risk, CLOs are attractive and we believe we are well-positioned as more investors continue to enter the space."
Palmer Square is a boutique credit and alternative investments manager with approximately USD2.8bn in assets under management. The firm is majority-owned by Montage Investments, which is the asset management arm of Kansas-based Mariner Holdings, a USD24bn financial services firm.