Wells Fargo is jumping back into the market for top-tier collateralized loan obligations (CLOs) after sitting on the sidelines for three years. The bank had pulled back when interest rates spiked in 2022, but now it’s ready to dive into the $1.3 trillion CLO market again—signaling confidence (or at least opportunity-seeking) in this corner of finance.

Editor’s Note: CLOs are bundles of risky corporate loans repackaged as investments, and big banks like Wells Fargo wading back in suggests they see value—or less risk—in them now. It’s a quiet but telling shift in strategy, hinting at how banks are adjusting to the post-rate-hike landscape. For investors, it might mean more liquidity in a market that’s been cautious lately.