| Dictionary, Encyclopedia and Thesaurus - The Free Dictionary 1,762,087,114 visitors served. |
|
Dictionary/ thesaurus | Medical dictionary | Legal dictionary | Financial dictionary | Acronyms | Idioms | Encyclopedia | Wikipedia encyclopedia | ? |
Collateralized Loan Obligation |
Also found in: Acronyms | 0.03 sec. |
|
Collateralized loan obligation (CLO) A security backed by a pool of commercial or personal loans , structured so that there are several classes of bondholders with varying maturities, called tranches. Similar in structure to Collateralized Mortgage Obligations. Collateralized Loan Obligation An asset-backed security backed by the receivables on loans. Banks package and sell their receivables on loans to investors in order to reduce the risk coming from loan defaults. Returns on CLOs are paid in tranches; that is, individual loans backing CLOs have different maturities and investors are paid out according to their level of investment. Banks offer higher interest rates to investors willing to buy CLOs backed by higher-risk loans. From a bank's perspective, in addition to reducing risk, CLOs also reduce their capital requirements by raising funds through the issue of CLOs. See also: Collateralized mortgage obligation. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
|
| ? Mentioned in | ? References in periodicals archive | |
|---|---|---|
Primus CLO I, which is managed by the company's Primus Asset Management subsidiary, is a $400 million collateralized loan obligation primarily composed of leveraged loans. Stedman is a synthetic collateralized loan obligation (CLO) that closed on June 29, 2005 and provides investors leveraged exposure to a diversified portfolio of high yield senior loans utilizing a total rate of return swap with Citibank, N. Stedman is a synthetic collateralized loan obligation (CLO) that closed on June 29, 2005 and provides investors leveraged exposure to a diversified portfolio of high yield senior loans utilizing a total rate of return swap with Citibank, N. |
| Financial Dictionary |
| Free Tools: |
For surfers:
Free toolbar & extensions |
Word of the Day |
Help
For webmasters: Free content | Linking | Lookup box | Double-click lookup | Partner with us |
|---|