Private Credit CLOs Luring Top Investors Set to Reshape Market

Some of the biggest buyers in the $1.3 trillion CLO market are piling into securitizations stuffed full of private debt, propelling a transformation in the asset class that industry observers say is only poised to accelerate.

Already investors including Japan’s Norinchukin Bank, one of the world’s biggest buyers of collateralized loan obligations, and NatWest Group Plc are scooping up so-called private credit CLOs, according to people with knowledge of the matter. More new entrants are expected to follow suit. That’s a significant change from just a few years ago, when limited visibility into underlying borrowers and a lack of ...