RT Journal Article
SR Electronic
T1 Price Tiering in the CLO Market
JF The Journal of Structured Finance
FD Institutional Investor Journals
SP 43
OP 48
DO 10.3905/jsf.2013.19.3.043
VO 19
IS 3
A1 Brian Juliano
A1 Edwin Wilches
YR 2013
UL https://pm-research.com/content/19/3/43.abstract
AB The collateralized loan obligation (CLO) market has grown to be a sophisticated and experienced capital market in the post-financial-crisis era. The authors focus on identifying and analyzing the differences that exist among CLO structures and their collateral managers and how these differences can influence the pricing of a CLO. As with any credit investment, it is important to understand a CLO bond’s covenants, or structural nuances, and the quality of its management team to fully assess relative value on a micro basis. Ultimately, the authors believe the alpha realized by CLO tranche investors will, in large part, be driven by the covenants, or lack thereof, that were negotiated into the offering documents.TOPICS: CLOs, CDOs, and other structured credit, legal and regulatory issues for structured finance