Blackstone, Apollo and Others Sell Bonds Backed by Private Credit at Fastest Pace Ever

Bonds backed by private credit loans are now among the hottest financial products on Wall Street with heavyweight firms like Blackstone, Apollo Global Management and Golub Capital selling them at the fastest pace on record.

The securities, known as collateralized loan obligations, are taking up an ever larger part of the $1.7 trillion private credit market. While most CLOs are backed by loans that banks give companies, known as broadly syndicated loans, private credit firms have muscled into the space with the loans they give smaller firms also being securitized and sold.