CLO Managers Boost Profits by Buying Cheap Software Loans Amid AI Uncertainty.
ByAinvest
Tuesday, Feb 17, 2026 7:03 am ET1min read
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Carlyle Group, BlackRock, and other CLO managers are buying discounted loans from software, insurance, and real estate companies to boost CLO profits. The drop in CLO bond prices has led to higher payouts for CLO equity holders, with a 10% surge in the past month. However, the market disruption is smaller in scope than previous upheavals, and the CLO market's overall profitability is still uncertain.

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