tag:blogger.com,1999:blog-6321089372587128676.post3245909851474277739..comments2023-10-17T10:01:00.917-04:00Comments on Distressed Debt Investing: Back from the Dead: The CLO RevivalUnknownnoreply@blogger.comBlogger4125tag:blogger.com,1999:blog-6321089372587128676.post-560850236320255262010-06-23T11:01:53.967-04:002010-06-23T11:01:53.967-04:00Hi Hunter, do we know what will happen to CLO spre...Hi Hunter, do we know what will happen to CLO spreads when interest rates begin to rise ?David in Londonnoreply@blogger.comtag:blogger.com,1999:blog-6321089372587128676.post-7719481764234664622010-04-21T09:20:42.190-04:002010-04-21T09:20:42.190-04:00I think the L is LIBOR, and the leverage figure ju...I think the L is LIBOR, and the leverage figure just means that there's 6x more debt securities issued by the CLO (investors get contractual interest and principal) vs. the equity piece, that gets the scraps.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6321089372587128676.post-12825888219924827082010-04-20T14:16:25.087-04:002010-04-20T14:16:25.087-04:00We never learn. After a bout of too much leverage...We never learn. After a bout of too much leverage, we begin cranking it up again. Make money in the short-run, and devil take the hindmost.David Merkelhttps://www.blogger.com/profile/05073877918072914309noreply@blogger.comtag:blogger.com,1999:blog-6321089372587128676.post-79285903273113209472010-04-20T13:41:55.494-04:002010-04-20T13:41:55.494-04:00Hi Hunter,
Really enjoy your blog. Not a real pro...Hi Hunter,<br /><br />Really enjoy your blog. Not a real pro when it comes to credit, but I try to keep up. I was hoping you could explain some things like what "L +200" means (Loan yield + 200bp?) and explain in more detail what you mean by CLO leverage. Do you mean that the CLO has embedded leverage? I take it it isn't via margin by the 6x figure. Is it through preferred shares? <br /><br />any information you could post about the workings of CLO internals would be much appreciated by me, and I suspect a good deal of your readership. This stuff isn't widely covered.Anonymoushttps://www.blogger.com/profile/12854212312458729028noreply@blogger.com