CLO Managers Bet Big on Deal Revival to Lift Profits in 2026
PositiveFinancial Markets

- CLO managers are anticipating a significant revival in corporate buyouts, projecting that demand for leveraged financing could potentially double by 2026. This optimism is fueled by recent underwriting activities, where leveraged finance bankers have already secured $65 billion in deals, indicating a strong belief in the resurgence of mergers and acquisitions.
- This development is crucial for CLO managers as it suggests a potential increase in profits driven by heightened activity in the leveraged finance market. The anticipated growth in M&A activity could lead to more opportunities for CLOs to invest in profitable deals, thereby enhancing their financial performance.
- The broader market context reveals a growing confidence among financial institutions, with bankers preparing for a surge in IPOs and a notable influx of capital into various investment vehicles. This environment reflects a shift in investor sentiment, as emerging markets are increasingly viewed as safer options, and wealthy investors are re-engaging with complex financial instruments, indicating a dynamic and evolving financial landscape.
— via World Pulse Now AI Editorial System







