The CLO market is entering 2026 with structure, data, and day-to-day execution at the top of the to-do list. Our conversations at this year’s Opal CLO Summit combined detailed discussion of deal mechanics with clear strategic questions about risk, liquidity, and growth. This is a market that prizes resilience, precision, and operational discipline.
As we look ahead, we see six themes that will shape the loan and CLO landscape in 2026.
1. Private credit CLOs and middle market deals move to center stage
Sessions on private credit CLOs, middle-market strategies, and fund finance reflected just how mainstream these instruments have become. Investors and managers view private credit CLOs as a core tool for expressing views on credit, yield, and structure across the credit cycle.
In any market climate, private credit raises the bar for data quality and loan administration. When facilities include less liquid or bespoke assets, three themes remain central: strong covenant tracking, consistent valuation data, and clear workflows for amendments and waivers. A stable framework helps the structure adjust to manager and investor needs.
2. Electronification turns trustees and agents into connectivity hubs
One of the most forward-looking discussions centered on the electronification of the CLO market. This shift means platforms, data providers, and service partners have to work together to address practical integration across systems. It affects everything from trading and analytics to settlement and reporting.
The next wave goes beyond digital documents. The goals are straight-through workflows, standard data formats, and a strong Application Programming Interface (API) layer between Order Management System(s) (OMS), Compliance engines, trustees/custodians, and third-party providers. As this trend gains momentum in 2026, third-party providers will serve as the hub connecting buyside, sellside, agents, and trustees. This structure helps all participants send, receive, and manage data more efficiently as the market evolves.
3. Data, AI, and optimization reshape portfolio construction
Other technology-focused sessions looked at the way data, artificial intelligence, and optimization tools can influence portfolio construction, manager selection, and risk monitoring. Machine learning, natural language tools, and scenario engines can help managers model ramps, trading paths, and loss distributions.
This shift increases the importance of clean, detailed, and timely data feeds. Managers rely on these inputs to support their models. By 2026, trustee platforms that deliver granular loan data, faster reporting cycles, and flexible extracts will help managers align their optimization engines with the actual state of the deal, the degree of risk, and investor priorities.
4. Liability management becomes a continuous discipline
Prospects for refinancings, resets, repricings, and active secondary trading featured heavily across the agenda. They reflect ongoing discipline around spreads, rates, and credit conditions. Managers seek flexibility to adjust terms, maturities, and coupons as their outlook evolves.
Trustees and agents stand at the center of that activity. Frequent liability management exercises require efficient processing of documentation, accurate calculations across complex waterfalls, and careful coordination around consent processes. Automated workflows, clear audit trails, and experienced staff make a big difference.
5. Structural innovation pushes the boundaries of the CLO toolkit
Bespoke and alternative structures, including digital infrastructure, project finance, fund finance, and other hybrid approaches point toward a broadening use of CLO technology. The structure offers a flexible toolkit that can support a wide range of collateral types and jurisdictional footprints.
By the same token, each new structure introduces unique requirements for waterfalls, triggers, hedging, and reporting. Trustees and agents help translate these complex designs into rule sets that function smoothly over the life of the deal. Close collaboration during deal formation, robust onboarding processes, and systems that accommodate unusual features through standard workflows can help keep ad hoc workarounds rare. Experience across multiple asset classes and regions also helps teams anticipate operational pinch points before they reach investors.
6. A more global, regulated, and investor-diverse ecosystem
Market maturity begets more diversity. Active markets, evolving regulations, and vehicles such as CLO ETFs all point toward a more global and diverse investor base. New distribution channels for these are also bringing structured credit to a broader set of institutions and platforms.
Trustees and agents in this environment serve as both operational and informational anchors. Cross-border structures require awareness of multiple regulatory and reporting regimes. Emerging investor channels bring new preferences regarding transparency, frequency, and format of information.
A consistent thread
Resilience and creativity continue to drive CLO and loan markets forward while paying close attention to risk. Across every theme, the need for stable, scalable administration stands out. As trustee and agent, we see our role as helping to build and maintain infrastructure that supports these evolving strategies while providing flexibility for clients and sponsors (industry stakeholders) to adapt.
Six themes, one focus: Your goals
We returned from the Opal 2025 CLO Summit energized by the innovation and collaboration shaping our industry. If we missed you at the event, we invite you to connect with our CLO team. Let’s schedule a conversation and explore how Wilmington Trust can help advance your objectives.
This article is intended to provide general information only and is not intended to provide specific investment, legal, tax, or accounting advice for any individual. Before acting on any information included in this article you should consult with your professional adviser or attorney. Facts and views presented in this report have not been reviewed by, and may not reflect information known to, or the opinions of professionals in other business areas of Wilmington Trust or M&T Bank. M&T Bank and Wilmington Trust have established information barriers between their various business groups.
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