Demystifying Collateralized Loan Obligations

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. However, in

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 performance of

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 that it

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

In today’s fiercely competitive financial landscape, being a leader in the banking world entails more than traditional offerings. As banks endeavour to enrich their clientele’s financial journey, the potential of structured investments emerges as a transformative advantage, symbolising

CLOs generated positive total returns across the capital stack in September, the sixth straight month of positive returns, with returns primarily driven by positive carry. The technical backdrop remained supportive as the strong levels of new issuance and

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 was the

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 limited liability

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 they operate,

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