What are Collateralized Loan Obligations (CLO)?

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

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

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,

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

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

The first joint publication between Yield Book and Refinitiv LPC is now available. This paper covers what a Collateralized Loan Obligation (CLO) is, why it’s a compelling structured product, and how it fits into the broader

The European collateralized loan obligation (CLO) market experienced positive news last week, with two new deals announced. There also seems to be increased activity in the UK commercial real estate (CRE) sector, including plans to renovate

Alternative investments are gaining traction. An estimated 80 percent of young investors are allocating more of their portfolios to investments that fall outside of the more classic categories like stocks and bonds, a study from Bank of

The LSTA and event co-host DealCatalyst are excited to announce a new partnership on a premier industry event for the broadly syndicated CLO and leveraged lending market. The LSTA serves as the industry trade association and voice of the

Securitised credit can be a useful fixed income allocation for institutional investors who focus on book yield or those trying to match the cash flows of future pension liabilities. The asset class, which broadly consists of

Challenges in the banking system are expanding the opportunities available to direct lenders. I believe the shifts we’re seeing won’t be short-lived, but, to borrow a phrase from Oaktree Capital Management Co-Chairman Howard Marks, may represent

U.S. commercial-property loans set to mature in 2023 and 2024 total nearly $900 billion. Against a backdrop of higher borrowing costs, falling prices and an increasingly risk-averse attitude among traditional sources of financing, these mortgages are coming due

What are leveraged loans? About five years ago in episode 205, we discussed a rather obscure asset class that goes by multiple names. The names include leveraged loans, syndicated bank loans, floating rate loans, or senior loans. These

The collateralized loan obligation (CLO) market is returning to a healthy issuance pace, after pausing briefly in the wake of regional-bank and Credit Suisse failures. However, jitters remain that further disruptions could be in store, and