The new series, known as the S&P U.S. CLO Investment Grade Indices, tracks USD-denominated floating-rate tranches ranging from AAA down to BBB ratings. By integrating pricing data from S&P Global Market Intelligence and credit insights from S&P Global Ratings, the indices seek to bridge the gap between underlying leveraged loan performance and the broader capital structure of CLOs.
S&P Dow Jones Indices Targets CLO Market with New Benchmark Series
S&P Dow Jones Indices has launched a suite of investment-grade benchmarks for Collateralized Loan Obligations, aiming to provide institutional investors with a standardized framework for tracking floating-rate debt. The move signals a broader effort by the index provider to bring greater transparency to the rapidly expanding structured credit market.
Cameron Drinkwater, Chief Product & Operations Officer at S&P DJI, noted that the indices serve investors looking for diversified floating-rate income and improved interest rate risk management. Kunal Mehta, Head of Fixed Income Products, added that the rules-based benchmarks are intended to support the entire ecosystem, including issuers and product providers, as CLOs solidify their position as a staple of fixed income portfolios.
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