The strong growth of the CLO market over the past decade owed its success to numerous factors — the durability of term leverage structures, the up-in-quality bias of CLO loan portfolios, the demand for high-rated fixed income securities, and the growth of private credit markets have all played major roles. And perhaps most importantly, during a period where yields on public fixed income securities have fallen to unviable levels for many investors, CLO equity has continued to generate high annual cash flow (Exhibit 1).