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Exploring the Complexities of CLOs and Credit Markets
Delve into the intricate relationship between the credit market and Collateralized Loan Obligations (CLOs), discussing the impact of rate cuts on floating rate investments, the growth of CLO issuance activity, and the comparison between CLOs and ABS CDOs. Analyze the dynamics of CLOs in the US market, including spread decreases, changing recovery landscapes, and the evolution of private credit CLOs towards ownership of the capital structure. Explore the resilience of the middle-market focus for private credit deals amidst the trend of larger mega-cap transactions in the market.