The Importance of CLOs in Risk Management and Diversification

European collateralized loan obligations (CLOs) have proved remarkably stable since S&P Global Ratings rated its first transaction in 2000. During this time, European CLOs have resisted several upheavals, including the global financial crisis, the dotcom bubble,

Private credit investing has gained momentum in recent times compared to other asset classes. PitchBook estimates that private debt now makes up about 10% to 15% of total assets under management (AUM) in the private markets,

What exactly is CLO equity? How does it function in the complex world of investments? If you are curious about these questions, you have come to the right place. In this article, we will unravel the

The integrity of the global financial system has been endangered by a number of external shocks to the economy over the past 20 years, underscoring the necessity for proper portfolio diversification to safeguard investors from negative market

Collateralised Loan Obligations, or CLOs, are bond instruments issued to fund a specific pool of loans, typically senior secured or ‘leveraged’ loans, to companies. The bonds are split into tranches that can carry different ratings (and

When assessing past and present structured products, it is clear that products have been offered that failed to meet investors’ expectations. For this reason, it is important that advisers have a clear understanding of what structured

When investors think of bonds, their minds immediately go toward U.S. Treasuries or other IOUs issued by corporations. Maybe municipal securities enter their minds. But these are just the tip of the iceberg with regard to

The $1.2 trillion collateralized loan obligations market is moving toward individual investors and financial advisors in ways that can make sense as a cash alternative or alternative income source. There are fewer than a dozen ETFs

Wall Street bankers looking to raise fresh financing for multi-billion dollar buyouts are getting a boost from the record start to the year from a critical part of the leveraged loan universe. Sales of collateralized loan

For the intrepid investor, there is no shortage of diversified investment opportunities. Interest in cryptocurrencies, structured products, direct indexing, and other “trendy” assets has grown in recent years, but a new report by Morningstar suggests that advisors may need

Collateralized loan obligation (CLO) equity has emerged as a source of potentially robust, and front-loaded, returns for sophisticated investors. Over the past 30 years, collateralized loan obligations (CLOs) have grown from a niche asset class into a

CRE CLOs have emerged as a powerful tool in commercial real estate financing, with $30 billion issued in 2021. They cater to transitional properties, offering a unique approach compared to traditional CMBS. Despite challenges, their flexibility