CLO Managers Bet Big on Buyout Revival to Lift Profits in 2026
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Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000A flare up in high-profile corporate buyouts is likely to spread into 2026, spurring demand for leveraged financing that could double by some estimates, according to debt managers. Managers of collateralized loan obligations are banking on falling borrowing costs, rekindled M&A activity and looming debt maturities to fuel demand for the debt, which private equity firms and other buyers often use for leveraged buyouts and mergers. That’s even as a mismatch in supply and demand, and tightening spreads on leveraged loans have made returns challenging.