Market Outlook: Spreads, Technicals and the Road Ahead

Each panellist offers their outlook for CLO spreads and market conditions over the next three to six months. Olivier Gozlan advocates playing duration as a risk management tool rather than relying solely on spread and price signals. Savvas Charalambous sees the market as technically driven, with dispersion continuing. Kevin Wong notes the market has been resilient through recent shocks and expects investors to favour cleaner IG and double-B profiles. Michael Htun warns that idiosyncratic risks are increasing across chemicals, software, consumer discretionary and the 2028 maturity wall, and that investors will need to work harder to find returns.