Goldman Sachs in Talks to Acquire CLO Firm Palmer Square Capital Management
Goldman Sachs is reportedly the lead bidder for Kansas-based Palmer Square Capital Management, a collateralized loan obligation (CLO) firm managing $37 billion. The potential acquisition highlights Goldman's strategy to expand its presence in alternative credit markets and compete with major players like Apollo Global Management. CLOs are pools of floating-rate loans that offer higher returns but come with increased default risk. They have gained popularity due to their performance during market downturns compared to high-yield bonds, especially as interest rates remain elevated at around 5%. The CLO market has grown significantly and is now comparable in size to the U.S. high-yield bond market. Goldman's move comes amid a private credit liquidity crunch and rising demand for alternative assets. Other firms like Blackstone, Ares Management, and Apollo have also been active in issuing or expanding their CLO offerings recently.
Topics: Alternative Credit Markets CLOs (Collateralized Loan Obligations) Goldman Sachs Palmer Square Capital Management