John Kerschner, Global Head of Securitized Products at Janus Henderson, argues that liquidity in Collateralized Loan Obligations is substantially better than market perception suggests. His commentary directly counters a common narrative of illiquidity in structured credit, positioning CLOS as a more accessible instrument.

This assessment arrives as investors grow weary of stringent private credit funds, which often impose long lock-ups and tight redemption gates. The comparison frames CLOS as a viable alternative for those seeking yield without the same operational constraints, potentially redirecting capital within the credit sector.

For allocators, Kerschner’s view prompts a strategic rethink. If CLOS indeed provide superior tradability, they could see increased inflows from institutions balancing return objectives with liquidity needs. His analysis serves as a corrective to overly pessimistic assumptions about structured finance.

The remarks, made on Bloomberg's "ETF IQ," provide a timely data-driven counterpoint to skepticism, suggesting a mispricing of liquidity risk in the CLOS market relative to private credit vehicles.