RT Journal Article
SR Electronic
T1 Investor Views on CLOs: Assessing Sector
Opportunities and Evaluating a CLO and Its Manager
JF The Journal of Structured Finance
FD Institutional Investor Journals
SP 204
OP 210
DO 10.3905/jsf.2013.18.4.204
VO 18
IS 4
A1 David Yan
A1 Serhan Secmen
A1 Aashh K. Parekh
A1 Volkan Kurtas
A1 Gina Hubbell
YR 2013
UL https://pm-research.com/content/18/4/204.abstract
AB U.S. collateralized loan obligations (CLOs) continued their strong comeback in 2012. Because most CLOs are passing their overcollateralization or reinvestment test, the majority of equity tranches are cash flow positive. The panelists can clearly see a divergence of performance among top and mediocre managers. In the question and answer section, the panelists addressed how manager performance is measured from both the equity and the debt perspective, what other qualitative measures are considered in the evaluation of a manager, how first-time CLO managers should be evaluated, the outlook for CLO performance, which parts of the capital structure in primary and secondary CLO transactions offer the best value, the main risks to the positive momentum in new-issue CLO volume, and the panelists’ forecasts for full-year CLO issuance.TOPICS: CLOs, CDOs, and other structured credit, financial crises and financial market history