Opportunity grows for senior loans and CLOs

Senior Loans and CLOs Gain Appeal as Inflation Stays Elevated

Nuveen CIO Saira Malik examines how renewed energy-driven inflation and higher-for-longer rates are shaping opportunities across floating-rate credit.

• Oil above $100 and rising diesel costs are keeping inflation elevated, while Nuveen expects the Fed may be less inclined to hike than markets currently imply.
• Senior loans offer limited duration sensitivity and attractive income, with a yield to three-year of 9.02% as of 10 September 2026.
• Credit fundamentals have improved, but dispersion remains high, increasing the importance of selective exposure to stronger issuers and CLO structures.

Explore the full report for a deeper view of floating-rate credit opportunities in a volatile rate environment.