CLOs: How They Work

Collateralized loan obligations are among the best debt investment opportunities for this year, according to John Wright, global head of credit at Bain Capital. Spreads on the structured investment vehicles, which repackage leveraged loans into bonds

The biggest US banks are stepping back into the $1.3 trillion market for collateralized loan obligations after nearly two years of shying away from investing in the securities. Citigroup Inc. has resumed buying CLOs, according to

Structured products are no stranger to the limelight. Once only garnering interest from niche Wall Street trading floors, collateralized debt obligations (CDOs) and mortgage-backed securities (MBS) have become household names, as these products were cited as

Collateralized Loan Obligations, commonly referred to as CLOs, are structured financial instruments that have gained notoriety and popularity in recent years, particularly for their intrinsic characteristics of generating higher yields and allowing for more risk diversification

Discover how the leveraged loan market fared in 2023, with the Credit Suisse Leveraged Loan Index returning 13.0%. Learn more about Volta Finance Ltd’s investment objectives.

Despite another challenging year for financial markets, European leveraged loans bucked the trend generating healthy double-digit returns. Here, we explore some of the key drivers behind the defensive nature of the loan universe and ask: through

In 2021, specialist asset managers created over $500 billion in CLOs, benefiting from substantial post-pandemic monetary support. However, momentum has slowed in the first half of this year, with only about $69 billion launched or refinanced,

Definition and Purpose A Collateralized Loan Obligation (CLO) is a type of financial security that is backed by a pool of loans, typically corporate loans or commercial real estate loans. The purpose of a CLO is to

A type of refinancing transaction is becoming more popular in the $1.3 trillion market for collateralized loan obligations, a sign the industry is healing as concerns over surging inflation and a potential recession abate. Known as

Collateralized loan obligations, or CLOs, may be a way for advisors to enhance retail clients’ portfolios. They provide investors with access to a diverse pool of senior secured loans. While they have been primarily used by

A Collateralized Loan Obligation (CLO) is a financial instrument where loans are pooled together and sold to investors. These securities are backed by a collection of loans, similar to how Collateralized Mortgage Obligations (CMOs) are backed by mortgages.

After being introduced in the UK in the 1990s, structured products have gained more traction worldwide over the last decade. They are a broad and complex set of investment instruments, delivering a return dependent on the

Following 525 basis points in rate hikes over a period of 16 months, fixed income investors find themselves in a very different world than the zero-percent regime that ensued after the Global Financial Crisis (GFC). Now