Vanishing CLO Profits Are Sparking Infighting: Credit Weekly
- Posted on July 18, 2026
- By Financial Post
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- 1 min read
Collateralized Loan Obligations have become significantly less attractive to institutional investors due to declining profitability margins. As returns compress and market conditions deteriorate, major financial players are reassessing their exposure to these instruments. This shift is creating internal tensions among banking divisions that previously relied on CLO structuring as a key revenue driver, forcing firms to recalibrate their fixed-income strategies.
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