Complexity to confidence: 5 principles for corporate trust excellence

The CLO market is at an inflection point. The global market has grown to $1.5 trillion, with the U.S. representing $1.2 trillion of this total. In 2024 alone, U.S. CLO issuance reached $208 billion in new transactions, while private credit CLOs surged to $43 billion year-to-date in 2025 — accounting for 20% of overall issuance.

As these markets converge and asset managers scale across both broadly syndicated and private credit, your choice of corporate trust partner becomes strategic infrastructure, not a service decision. U.S. Bank has identified five strategic areas to help navigate this changing CLO landscape.

Pillar 1: Operational predictability that adapts with asset class evolution

When approximately 90% of quarterly distributions concentrate within days, flexibility becomes pressure. Loan customization — particularly in private credit — demands administration without complexity. The question isn’t whether your trustee handles bespoke transactions: it’s whether they can do so repeatedly at scale during peak periods.

Leading trustees validate data continuously, not just at cutoff. Through automated reconciliation, teams can shift from routine processing to strategic exception handling — where experience and judgment create the most value. This operational infrastructure becomes even more critical as asset classes evolve. As broadly syndicated and private credit markets converge, your infrastructure must adapt without service disruption. The result is predictable execution when volume spikes and the capacity to absorb market changes without rebuilding relationships.

Key considerations:

• Can your trustee maintain service quality during concentrated payment cycles?
• How do they accommodate both standardized and bespoke transaction requirements?
• Will their operational framework adapt as asset class characteristics evolve?

Pillar 2: Deploy AI as a strategic enabler

Data extraction from PDFs and emails is now table stakes. The strategic value of AI comes when fragmented information from multiple parties becomes actionable portfolio intelligence. For asset managers overseeing dozens of CLOs, being able to view entire portfolios holistically represents a fundamental capability upgrade.

The industry's migration from Excel and email to API-first architecture reflects this evolution. Direct system-to-system connections eliminate manual data handling while enabling consolidated portfolio views. At U.S. Bank, we are building infrastructure that grows with our clients and allows teams to focus on strategy rather than data gathering. It is this type of foundation that transforms technology from cost center into competitive enabler.

The real breakthrough isn't automating what exists — it's building infrastructure that turns fragmented data into strategic advantage.

Key considerations:

• Is your trustee building API infrastructure for tomorrow or maintaining legacy workflows?
• Can they deliver consolidated portfolio views that enable holistic analysis?
• How does their technology roadmap align with your growth trajectory?
• Does your trustee have the market scale to invest in emerging technology?

Pillar 3: Data integrity as competitive foundation

In a multi-trillion dollar market with no single authoritative source, data integrity needs to be a continuous discipline rather than a point-in-time verification. When trustees operate across thousands of transactions with hundreds of counterparties, network effects emerge: validation for one client improves accuracy for all participants in that loan pool.

This continuous feedback, combined with institutional knowledge built over decades of market cycles and evolution, transforms data quality from a compliance requirement into a strategic asset. Trustees who have navigated volatility time and again understand which processes remain robust under stress and apply this to strengthen client positions.

Scale creates a network where data quality improves continuously and strengthens the foundation for all. — U.S. Bank

Key considerations:

• How does your trustee's scale create data quality advantages through network effects?
• What validation processes operate when there's no central authority?
• How has their data infrastructure performed across different market cycles?

Pillar 4: Transform compliance into regulatory strength

While loan market regulations remain relatively stable, forward-thinking firms recognize that market evolution, such as emerging technologies like stablecoins, are on the verge of reshaping operational requirements — and new regulations will follow.

Purpose-built technology platforms based on open principles support rapid iteration when regulations shift, without the need to wait for vendor development cycles. This helps transform regulatory adaptation from periodic disruption to continuous capability enhancement. Long-term market expertise ensures change builds on proven foundations. Forward-thinking firms view regulatory development as competitive strengthening, not compliance burden.

Key considerations:

• Does your trustee invest proactively in regulatory adaptation capabilities?
• Are they building flexible frameworks for emerging requirements or optimizing for today?
• How stable is their strategic commitment through ownership or market changes?

Pillar 5: Navigate change through trusted partnerships

Your trustee relationship determines how you navigate growth. The right partnership delivers anticipatory service that evolves with your needs, unified accountability that eliminates vendor coordination complexity and the confidence that comes from permanence in the market.

Deep familiarity with your portfolio strategy, risk tolerance and operational preferences enables your trustee to anticipate issues before they materialize and adapt processes before you need to ask. This proactive approach — built through sustained collaboration, not just onboarding documentation — becomes critical during market stress when responsive execution determines whether opportunities are captured or disruptions absorbed.

Consistent commitment to the loan market since its inception provides both expertise and the confidence to distinguish necessary change from market noise, building long-term, sustainable partnerships rather than transactional vendor relationships.

Key considerations:

• Does your trustee demonstrate proactive service or reactive problem solving?
• How quickly can they adapt to your evolving needs without formal renegotiation?
• What's their commitment track record when market conditions shift?
• Can they scale services with your growth trajectory?

Turning scale into advantage

The convergence of traditional and private credit, accelerated by technology and growing investor access, rewards those with operational precision and adaptive infrastructure. The trustees who combine operational excellence with technological sophistication and proven commitment help asset managers convert market complexity into competitive position. In a market where stability enables innovation, the right partnership provides the foundation for confident growth.

Given the complexities of CLO structure and nuances of the bank loan asset class, it’s helpful to partner with an experienced service provider. At U.S. Bank, we combine customized solutions with high-quality service to support even the most complex products and client needs. Contact us to learn more about the bank loan and CLO services that we offer.