Are CLOs Meant To Be Redeemed Prematurely?

Are CLOs Meant To Be Redeemed Prematurely? Upfront costs are incurred for putting together a CLO. This means that technically speaking, the CLO underlying collateral MV is already down by X% at the outset. If X is, say, 1.5%, the collateral MV decline could be spread over, say, 7 years. Given the arbitrage nature of…