Private credit Why CLO Equities - Macroeconomics and credit cycle considerations
Explore how CLO equity can deliver stable returns in a declining rate environment through active credit selection and expert management.
In this video, we discuss how Invesco’s platform has evolved over the past three decades to better support our clients. We highlight the advantages of a private-side approach, the strength of our collaborative global structure, and our underwriting discipline. As client needs have evolved, we have expanded our abilities to deliver customized, solutions-oriented outcomes, including multi- strategy and liquid–semi-liquid credit offerings. The video also explores key industry trends, particularly ongoing consolidation and the increasing value investors and private equity firms place on partnering with managers who offer broad, integrated expertise. Watch the full video to learn how our people, process, and platform work together to deliver informed outcomes across the credit spectrum.
Starting with the inception of our credit organization three decades ago, we intentionally aligned our structure through the lens of our clients. Our entire franchise operates on the private side and affords us a potential informational advantage versus public side investors, given the flow of information and our ability to converse with management teams on a regular basis. Another important element is our structure, which encourages collaboration amongst our different teams across broadly syndicated loans, direct lending, special situations, and structured credit.
Our heritage in large‑cap lending within the broadly syndicated loan market has allowed us to build a diversified credit platform, as we are one of the largest investors and traders across the market. Consistent underwriting standards have been, and will continue to be, our North Star and the foundation of our success.
Our experience and the breadth of our platform help inform each investment decision. Everything starts with our people and our culture; we have one of the deepest and most experienced teams, with leadership that has been investing for two to three decades. We are a trusted partner for clients who rely on Invesco to be a prudent investor and a leader in innovation and thought leadership. As clients become more sophisticated, we have been challenged to evolve and meet their changing needs.
A significant shift over the past decade has been our ability to provide customization and solutions‑oriented outcomes. We are one team and offer a common approach to onboarding, reporting, communication, and client servicing, enabling clients to benefit from the collective expertise of a global organization with local insights. Common leadership and joint investment committees drive decision‑making to promote consistency.
Our cultural alignment with clients is critical to their investment experience. We strive to be great listeners, helping clients solve problems and meet objectives through innovation and flexibility. One of the most notable developments in recent years is the shift from investing in individual asset classes to multi‑strategy offerings, bringing together liquid and semi‑liquid credit.
We believe consolidation will continue at all levels, with investors partnering with fewer managers and private equity consolidating key financing relationships. Both are working with asset managers that can offer a diversified suite of expertise.
Explore how CLO equity can deliver stable returns in a declining rate environment through active credit selection and expert management.
CLO equity stress tests show strong returns even in stress, aided by widening spreads, low financing costs, and refinancing benefits.
CLO equity offers institutional investors the potential for competitive income, diversification, and growth, enhancing portfolios beyond traditional fixed income and private equity.
Important information
Information is provided as at December 31, 2025 sourced from Invesco unless otherwise stated.
This is marketing material and not financial advice. It is not intended as a recommendation to buy or sell any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. Views and opinions are based on current market conditions and are subject to change.
Investment risk
For complete information on risks, refer to the legal documents.
Many senior loans are illiquid, meaning that the investor may not be able to sell them quickly at a fair price and/or that the redemptions may be delayed due to illiquidity of the senior loans. The market for illiquid securities is more volatile than the market for liquid securities.
The market for senior loans could be disrupted in the event of an economic downturn or a substantial increase or decrease in interest rates. Senior loans, like most other debt obligations, are subject to the risk of default. The market for senior loans remains less developed in Europe than in
the U.S. Accordingly, and despite the development of this market in Europe, the European Senior Loans secondary market is usually not considered as liquid as in the U.S.
The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.
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