CLO Market
topic on 1 show · 6 statements across 4 episodes
6 statements about CLO Market, every show
A diversified CLO portfolio requires roughly 20 positions at 5% maximum
“To be diversified in the CLO market, I would say it's something like having max positions of around five percent of the portfolio. Each CLO, again, is going to have 200 or 300 different loans in it. You would not need a hundred CLO equity tranches to be divers…”
Broadly syndicated loans comprise 90% of the CLO market
“The 90% of the CLO market is broadly syndicated CLOs. So if you look in there, you're going to find companies who borrow a billion dollars and up basically.”
Majewski: CLO AAA and AA securities have zero historical impairments
“There's never been an impairment in the history of the CLO market on a AAA or AA security issued.”
Rieder: BlackRock prefers owning junior tranches in CLOs to control structures
“Oftentimes today, for example, the CLO market, We like to own the lower parts of the debt stock because we'd like to own the structure.”
Jefferson: Private equity funds will inject capital to save struggling CLO credits
“And the one thing I can guarantee you is, is that people who raise money will never give it back. They're just not going to give it back and say, I couldn't find anything. So they're going to find something to invest in. I think that's going to come to helping…”
The $750B CLO market requires big data analytics over manual spreadsheets
“This is a seven hundred and fifty billion dollar market where there's 125 different managers where there's about a thousand deals with 3000 different underlines. So this has gone from something that you can do yourself to big data.”