Understanding collateralized loan obligations

Volta Finance (VTA) posted a 5.7% decrease in NAV in 2020, recovering from the initial 32.4% drop in March. This was mainly supported by CLO equity tranches posting solid monthly returns in November and December 2020 at +11.0%

Refinancings and resets of U.S. collateralized loan obligations may notch a fresh record this year as risk premiums narrow, allowing portfolio managers to lock in better terms. Wall Street has increased estimates for the transactions with Deutsche Bank

What is a CLO? Put simply, a CLO is a portfolio of leveraged loans that is securitized and managed as a fund. Each CLO is structured as a series of tranches that are interest-paying bonds, along with a

The CLO market has once again proved to be resilient in the face of regulatory headwinds as it registered its second best year on record in terms of new issuance last year. Coupled with a huge volume of

The Rating Outlook for Fitch-rated US collateralized loan obligations (CLOs), which are rated primarily investment grade, is Stable for 2021 due to robust loss protection and other structural features, Fitch Ratings says. In Europe, Fitch rates the entire

MM entities showed resilience after being hit hard by the pandemic. Relative to BSL CLOs, MM CLOs’ liability structures typically close with higher tranche subordination, and the cushions on their junior overcollateralization (OC) ratio tests were no exception.