Collateralized loan obligation

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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, the individual loans backing a CLO have different maturities, and investors are paid out as each matures. 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.
References in periodicals archive ?
The group has developed extensive expertise in collateral management for collateralized debt and collateralized loan obligations, which is derived from GSC's core competency in complex credit analysis.
total rate-of-return collateralized loan obligations (TRR CLOs) that are leveraged via total return swaps (TRS) and similar structures have shown comparable rating performance as similarly rated tranches from traditional cash CLOs, according to a special report by Derivative Fitch.
Collateralized loan obligations (CLOs) and hedge funds are the primary investors in these deals, which may or may not incorporate bond components.
NEW YORK -- A Fitch Ratings study has found that collateralized loan obligations (CLOs) in the U.
Fitch Ratings has published its finalized methodology to incorporate its Recovery Ratings into the ratings of Collateralized Loan Obligations (CLOs) thereby capturing a more fundamental, granular view of the underlying assets to more accurately determine the credit loss profile of the CLO collateral portfolio.
NEW YORK & LONDON -- Fitch Ratings has published its finalized methodology to incorporate its Recovery Ratings into the ratings of Collateralized Loan Obligations (CLOs) thereby capturing a more fundamental, granular view of the underlying assets to more accurately determine the credit loss profile of the CLO collateral portfolio.
SEQUILS-Centurion and MINCS-Centurion are cash flow and synthetic collateralized loan obligations (CLOs), respectively, jointly obtaining exposure to a portfolio of high yield U.
NEW YORK -- Today, Fitch Ratings has published an exposure draft on its new methodology to incorporate its Recovery Ratings into the ratings of Collateralized Loan Obligations (CLOs) thereby capturing a more fundamental, granular view of the underlying assets to more accurately determine the credit loss profile of the CLO collateral portfolio.
syndicated lending, with much of the volume being held by collateralized loan obligations (CLOs).
CDO sector has recently seen a resurgence of synthetic collateralized loan obligations (CLO) using total return swaps (TRS), according to a special report by Fitch Ratings.
The Leveraged Investments Group established a London-based team in 2005 to manage Euro-denominated collateralized loan obligations.
a special purpose legal entity created by Barclays, The Bank of New York will fulfill a variety of roles and service the Gracechurch Corporate Loans Series, one of the largest fully funded balance sheet collateralized loan obligations ever issued by a UK bank.

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