The CLO Investor Podcast #25, Jonathan Horowitz, Partner & Head of Structured Liabilities, Fortress Investment Group
Oct 13, 2025
Jonathan Horowitz, Partner and Head of Structured Liabilities at Fortress Investment Group, shares his 30 years of expertise in structured credit and CLO markets. He dives into the trade-offs between bank leverage and CLOs, revealing how the CLO market is currently more cost-effective yet volatile. Jonathan also discusses the low supply of new loans, the implications of Fed rate cuts on demand, and stresses the importance of alignment in CLO management. He offers insights on pricing trends in private credit and highlights Fortress's active role in loan restructurings.
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Single Credit Team Improves Decisions
- Fortress uses the same credit team for broadly syndicated and middle market loans organized by industry verticals to improve relative value decisions.
- Frequent reporting from middle market credits enhances information flow and informs syndicated loan decisions.
Retain Equity To Align Interests
- Use CLOs as a financing tool and retain equity to align manager and debt-holder interests when possible.
- That alignment matters most in stressed environments and alters manager behavior under stress.
Banks And CLOs Are Complementary
- Bank financing and middle market CLOs are complementary and often symbiotic when financing private credit portfolios.
- CLOs offer term, non-mark-to-market financing while banks offer more flexibility and asset-by-asset approval.