Understanding The Commonly Used CLO Deal Metrics and Their Limitations (Updated)
In conclusion, it is important to understand the limitations of each metric so as to avoid mistaking outperformance of deal metrics to be investment outperformance.
In conclusion, it is important to understand the limitations of each metric so as to avoid mistaking outperformance of deal metrics to be investment outperformance.
Securitisation can certainly play a crucial role in facilitating the mobilisation of institutional capital into infrastructure financing, especially for sustainable infrastructure and clean energy projects. Additionally, it can help banks recycle their balance sheets into originating new loans to finance such infrastructure initiatives.
This theoretical exercise of understanding the floor highlights the vast amount of credit support in the 2.0 EU CLO structure post-GFC.
Have you ever wondered how CLO AAA/AA/A tranche ratings are created from a portfolio of non-investment grade loans?
Is the Post-FInancial Crisis Arbitrage US CLO Structure Too Conservative? The term 'arbitrage' would suggest a pretty good average IRR...
This research report is now available to bloomberg terminal users.
