CLO equity offers a classic example of short- versus long-term thinking. Investor dialogue and market research often emphasize short-term conditions, such as arbitrage spreads or near-term credit sentiment. But, in our view, this underappreciates the compounding impact of long-term optionality in the structure.
InREV, the European Association for Investors in Non-Listed Real Estate Vehicles, recently published their Consensus Indicator for March 2026, revealing that sentiment remains positive but is moderating amid rising geopolitical and interest rate pressures.
Investors are climbing a high wall of worries in 2026. With wars in the Middle East and Ukraine, messy trade disputes in the world’s major economic regions, growing fears over the impact of artificial intelligence, and deep political divisions in the United States and elsewhere, it can be difficult to remove emotions from practical investment decisions.