CLO tranches had strong total returns in December. JP Morgan estimated returns for December were 0.83% (AAA), 1.07% (AA), 1.35% (A), 2.25% (BBB), 2.89% (BB), and3.34% (B). The CS Leveraged Loan Index returned 1.61% in December. The market’s anticipation of a soft-landing scenario in 2024 intensified through December, igniting a rally that supported a strong finish to an already remarkable year both loans and CLOs.