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Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

computerized loan origination (CLO)

A computerized network of major lenders that uses artificial intelligence to evaluate loan application data entered online by agents and determine loan eligibility and terms.HUD has approved the procedure as long as there is full disclosure of the fee,multiple lenders are displayed on the screen to give borrowers freedom of choice,and the fee charged is a dollar amount rather than a percentage of the loan.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
The annual award goes to the CLO who best demonstrates outstanding leadership, dedication, initiative or imagination.
The CLO was arranged by a bank syndicate including Morgan Stanley as structuring lead, and Bank of America Merrill Lynch and Wells Fargo Securities as co-leads.
GLM EUR CLO 2 will initially be backed by a 92% ramped EUR 367 million portfolio of primarily senior secured loans as of closing and will have a four and a half year reinvestment period and a two year non call period.
The average credit quality of the indicative portfolio is 'B', which is comparable with that of recent CLOs. Issuers rated in the 'B' rating category denote a highly speculative credit quality; however, in Fitch's opinion, the class X and class A-1 notes are unlikely to be affected by the foreseeable level of defaults.
The degree of CE available to the class A-R notes is below the average CE of recent 'AAAsf' CLO issuances; however, cash flow modeling indicates performance in line with other CLO issuances rated 'AAAsf' by Fitch Ratings.
Tetragon Credit Income Partners (TCIP) has announced that former co-head of BlackRock's US CLO business Scott Snell has joined TCIP's CLO business, the company said.
Global Banking News-September 25, 2018-Tetragon Credit Income Partners expands CLO business with addition of former BlackRock exec
The degree of CE available to class A-1-RA notes is above the average of recent 'AAAsf' CLO issuances, and the degree of CE available to class A-1-RB notes is below the average CE of recent 'AAAsf' CLO issuances; however, cash flow modeling results are in line with other Fitch-rated 'AAAsf' CLO notes.
Global Banking News-June 8, 2018-GoldenTree closes USD 710m CLO under GLM strategy
M2 EQUITYBITES-June 8, 2018-GoldenTree closes USD 710m CLO under GLM strategy