Collateralized Loan Obligation Market Report 2026

The collateralized loan obligation market size has grown rapidly in recent years. It will grow from $1.6 trillion in 2025 to $1.83 trillion in 2026 at a compound annual growth rate (CAGR) of 14%. The growth in the historic period can be attributed to search for higher-yield investment instruments, expansion of leveraged loan markets, institutional investor participation growth, development of structured finance expertise, regulatory frameworks supporting securitized products.

The collateralized loan obligation market size is expected to see rapid growth in the next few years. It will grow to $3.07 trillion in 2030 at a compound annual growth rate (CAGR) of 13.8%. The growth in the forecast period can be attributed to increasing adoption of technology-driven credit analysis, rising demand for customized investment tranches, expansion of private credit markets, growing focus on risk-adjusted returns, increasing sophistication of institutional investors. Major trends in the forecast period include increasing use of data analytics in clo structuring, rising demand for yield-optimized credit products, growing transparency in clo reporting, expansion of automated risk assessment models, enhanced focus on portfolio diversification.

The rising appetite for high-yield investments is anticipated to support the expansion of the collateralized loan obligation (CLO) market in the coming years. High-yield investments are financial instruments or opportunities that typically offer higher potential returns compared to conventional investments, while also carrying greater risk. The growing interest in high-yield investments is driven by factors such as persistently low interest rates on traditional savings products, investors’ pursuit of enhanced returns, and economic conditions that encourage acceptance of higher risk in exchange for potentially greater rewards. High-yield investments strengthen collateralized loan obligations by generating higher returns, improving cash flows, and offering portfolio diversification, which collectively enhance the overall performance and risk-return profile of CLOs. For example, in March 2024, the Office for National Statistics (ONS), a UK-based government agency, reported that business investment in the UK increased by 1.4% during the fourth quarter of 2023, while total business investment for the year grew by 5.5% in 2023. As a result, the increasing demand for high-yield investments is contributing to the growth of the collateralized loan obligation market.

Key players in the CLO market are focusing on creating innovative CLO structures, such as exchange-traded funds (ETFs), to better manage risk-return profiles and address evolving market demands and investment strategies. ETFs are investment funds that offer diversified exposure to portfolios of CLOs, which are structured credit products made up of pooled corporate loans. For example, in July 2023, Panagram Structured Asset Management, LLC, a US-based investment advisor, launched two actively managed CLO ETFs, the Panagram AAA CLO ETF (CLOX) and the Panagram BBB-B CLO ETF (CLOZ). CLOX focuses on AAA and AA-rated CLO bonds, aiming for capital preservation and consistent monthly income with a 0.20% expense ratio. In contrast, CLOZ targets BBB and BB-rated CLO bonds, seeking higher yields while also emphasizing capital preservation, and features a 0.50% expense ratio.

In April 2024, Generali Investments Holding SpA, an Italy-based insurance firm, acquired Conning Holdings Limited for an undisclosed amount. This acquisition is part of Generali Group's strategy to increase its total assets under management, enhance its position as one of Europe's top 10 asset managers, and expand its global investment expertise in insurance and institutional fixed income. Conning Holdings Limited is a US-based investment management firm specializing in investment-grade-rated debt securities for CLOs.

Major companies operating in the collateralized loan obligation market are JPMorgan Chase & Co., Wells Fargo & Company, Citigroup Inc., Prudential Financial Inc., Morgan Stanley, BNP Paribas S.A., Mitsubishi UFJ Financial Group Inc., Deutsche Bank AG, Barclays PLC, BlackRock Inc., Credit Suisse Group AG, Blackstone Inc., Jefferies Financial Group Inc., Ares Management Corporation, Neuberger Berman Group LLC, RBC Capital Markets LLC, Natixis S.A., HPS Investment Partners LLC, Conning Inc., CIFC Asset Management LLC, Brigade Capital Management LP, GreensLedge Capital Markets LLC, Panagram Structured Asset Management LLC.

North America was the largest region in the collateralized loan obligation market in 2025. The regions covered in the collateralized loan obligation market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the collateralized loan obligation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The collateralized loan obligation market includes revenues earned by entities by providing services such as pooling of loans, trading, issuance of securities, structured investment, active management, and income generation. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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