Private Credit Is So Big That It’s Changing Part of CLO Market

Private credit firms, having shaken up financing markets by snatching buyout debt deals from Wall Street, are now changing the landscape in a part of the $1.3 trillion collateralized loan obligation business.

HPS Investment Partners and Blue Owl Capital Corp. have issued private credit CLOs in recent months, a new name for an old product that reflects how the size of the loans going into these CLOs is getting bigger over time.

CLOs repackage corporate loans into securities of varying risk and size that are then sold to other investors. Historically about 90% of new CLOs each year buy debt ...