Shiloh Bates, Flat Rock Global’s Chief Investment Officer, was interviewed by CreditSights to discuss why CLO equity underperformed in 2025. In the interview, he explains how elevated loan defaults, declining asset spreads, and higher required return assumptions combined to pressure CLO equity returns, while emphasizing that these challenges were cyclical rather than structural. Bates also shares why he believes the outlook for 2026 is more favorable, citing improving rate dynamics, the potential for increased LBO activity, and a possible attractive forward return environment for long-term investors.
21
Jan
2026