The summer months presented a unique opportunity in the CLO market, driven by elevated levels of supply. As active managers, we capitalized on this by adding selectively in primary markets to capture the technical-driven spread widening in high-quality assets. Key takeaways The European CLO market experienced elevated primary supply due to a combination of robust new issuance and excess reset volumes. The oversupply of CLOs drove spread widening in the primary market. Active managers capitalized on the market dislocation caused by the oversupply.