CLOs and ABS receive signs of interest at winter pension summit

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CLOs and structured credit soaked up the sun with pensions earlier this month in Scottsdale, Arizona, as public fund trustees and asset managers discussed strategies to adequately fund retirees’ payments at the Opal Public Funds Summit 2026.

While much of the credit talk focused on private credit, CLOs in particular received a shout-out at one point, as a panelist said CLO double-B tranches still offer an attractive relative value proposition.

Securitized credit in general was lauded for its diversification and risk-return benefits, while sentiment towards private credit was decidedly mixed.

Eyes on ABS

“I've always had an interest in that class,” Gregory Samorajski, CEO of the Iowa Public Employees Retirement System (IPERS), told 9fin at the conference, referencing CLOs and ABS.

IPERS has not seen “exceptional” opportunities so far in CLOs or ABS relative to other asset classes, but is open to investing there at some point, Samorajski said. “I'm not expecting we're necessarily going to be involved in CLOs or ABS in the near future at IPERS, but it's something that I'm interested in keeping at least on the back burner.”