Navigating CLO Arbitrage and Tail Risk in 2026

Join Dagmara Michalczuk at the European Private Credit Conference on Direct Lending
23 February 2026 | The Landmark Hotel | London, U.K.
Dagmara will be speaking at this event. Register here: https://hubs.la/Q042jP1D0

This week on Levered Lines, host Kerstin Kubanek speaks with Dagmara Michalczuk, Co-Chief Investment Officer at Tetragon Credit Partners, ahead of the Deal Catalyst European Direct Lending Conference. They discuss CLO market dynamics in 2026, including spread compression reaching post-financial crisis tights and the outlook for refinancing and reset activity. The conversation covers CLO equity arbitrage opportunities, tactical positioning strategies, loan repricing trends, and portfolio quality amid micro cycles in the market. Key themes include sector-specific concerns around software and AI disruption, chemicals, autos, building products, as well as evolving restructuring trends, liability management exercises, cross-border litigation developments, and challenges in manager selection.