Collateralised Loan Obligations explained

It may be time to revisit high yield. While investors have gravitated toward bank loans and private credit for years, an environment of low default rates, a higher-quality universe and a projected soft landing if a recession occurs

Recent private credit fund manager research conducted by the Alternative Credit Council and Dechert LLP has revealed a number of significant trends driving change in private credit fund structuring. The study found that 80% of respondents manage capital

Collateralized loan obligations (CLOs), single securities supported by larger pools of debt, are one of the corners of the fixed income that aren’t as vulnerable to rising interest. This is expecially compared to, say, long-dated Treasurys and corporate

CLOs are not just a hedge against rising rates. They also have historically provided higher levels of income for a lower level of risk – making a clear case for a strategic allocation. Investors have poured approximately $110

One of the hottest fund finance trends is an alternative investment vehicle that has become increasingly popular. A close sibling of collateralized debt obligations (“CDOs”), collateralized fund obligations (“CFOs”) are a vehicle for securitizing portfolios of alternative or

The credit quality of U.S. middle market collateralized loan obligations (CLOs), major sources of debt funding for mid-sized companies, has worsened only slightly even as the overall risk of late payments by these companies has increased, according to

A collateralized loan obligation (CLO) is a portfolio of predominantly senior secured loans that is securitized and actively managed. Each CLO issues a series of floating rate bonds, along with a first-loss equity tranche. The tranches differ in terms of

Collateralized loan obligations (CLOs) were abandoned after the global financial crisis (GFC) of 2007-2009. Since then, CLOs have made a comeback due to their strong performance during the GFC and beyond. CLO notes issued before the GFC did not have material defaults, and many CLO equity

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 resets, these

Gone are the days when investing was limited to numbers and charts alone. As the stock market has been unsettling for investors over the last year, some have become dissatisfied and want a change. They were eager to

What Is a Collateralized Loan Obligation (CLO)? A collateralized loan obligation (CLO) is a portfolio of predominantly senior secured loans that is securitized and actively managed. Each CLO issues a series of floating rate bonds, along with a first-loss equity

This article provides an overview of collateralized loan obligations (CLOs) as securitizations backed by diverse portfolios of senior secured leveraged loans, their historical performance and default rates, and how they differ from other securitization vehicles. It explains the

Collateralized Loan Obligations are now an established asset class, but Credit Risk Sharing is perhaps less well understood. We think it’s time for investors to appreciate what both can offer portfolios. Over the past 30 years, few parts

While issuance levels might continue to be lower than expected, the European CLO market continues to perform well according to Fitch. It has been two years since it downgraded a European CLO rating and the underlying numbers suggest

The world of finance has always been a complex and ever-evolving landscape, with new financial instruments and investment strategies emerging regularly. One such area that has seen significant growth in recent years is structured product investing. These financial instruments, which