Riskiest CLO Funds Are Flashing a Warning Sign: Credit Weekly

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Why This Matters

Investors are becoming more cautious about taking on credit risk, with fears of rising defaults spreading from the leveraged loan market to retail funds that buy CLO debt, indicating a potential warning sign for the market.

Market Impact

Market impact analysis based on bearish sentiment with 80% confidence.

Sentiment
Bearish
AI Confidence
80%
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.

Fear of rising defaults is spreading from the leveraged loan market to some of the retail funds that ultimately buy the debt as investors get choosier about taking on credit risk.

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Original article published by Bloomberg on February 21, 2026.
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