CLO Deals Are Booming Even When the Math Says They Shouldn’t

Market Intelligence Analysis

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Why This Matters

The market for collateralized loan obligations (CLOs) is experiencing a boom, despite mathematical models suggesting that the deals should not be profitable. This anomaly suggests a shift in market sentiment or a mispricing of risk. The CLO market has grown to $1.3 trillion.

Market Impact

Market impact analysis based on bullish sentiment with 75% confidence.

Sentiment
Bullish
AI Confidence
75%
Time Horizon
Short Term

Article Context

Note: This is a brief excerpt for context. Click below to read the full article on the original source.

In the $1.3 trillion market for collateralized loan obligations — where money managers sell bonds to finance buying pools of buyout loans — ugly math used to kill a deal.

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Full article on Bloomberg
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Original article published by Bloomberg on February 9, 2026.
Analysis and insights provided by AnalystMarkets AI.