eli5: Collaterised Loan Obligations (CLOs)

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Can someone explain this to me please?

In: Economics

2 Answers

Anonymous 0 Comments

Essentially a pool of similar debt, securitized into a asset you can buy in the open market. It’s based off of the underlying cash flows and rents/leases of the companies involved in the security itself. Almost like an ETF, but on the debt side.

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