Collateralized Loan Obligations: Seeing beyond the complexity

The European collateralized loan obligation (CLO) market has held firm throughout this difficult economic climate. Panellists at Opal Group’s European CLO Summit 2023 remained optimistic that there could be 12 more deals before the year’s end. One point of discussion

Krisztina Anspach of BNP Paribas looks at some of the key trends and opportunities in structured products, including a growing role for technology and automation to drive industry development. Volta Finance Ltd (LON:VTA) is a closed-ended

In recent years, collateralised loan obligations (CLOs) have become increasingly common in financial markets. Their mix of above-average yield and potential for income has proved attractive in the past.  They are often misunderstood because the principles on which

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

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

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

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

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

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,

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

Volta Finance Ltd (LON:VTA) is a closed-ended limited liability company registered in Guernsey. Volta’s investment objectives are to seek to preserve capital across the credit cycle and to provide a stable stream of income to its

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,

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

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