2024’s impressive returns have set the stage for the year ahead. But with tightening spreads, increasing competition for high-quality assets, and ongoing concerns about tail risk, CLO investors will need to remain nimble and highly selective.

CLO funds listed in 9fin’s database returned 3.81% in Q4, taking average returns across 2024 to 17.84%. European funds across all strategies returned 19.04% in the year, US funds returned 18.88%, and funds with a global focus returned 15.19% on average.