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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.

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.

References in periodicals archive ?
The CLO is a proof that a farmer-beneficiary has the right of land ownership.
American Capital CLO Fund I is an important milestone in the development of our asset management platform," said Tom McHale, American Capital Senior Vice President, Finance.
The tna intelli-flay[R] CLO 3 also uses FQT spray gun air atomising and airless nozzles to meet any required range from 6kg/hr to 250kg/hr.
More than 200 posts, including such unaccompanied posts as Baghdad, Kabul and Islamabad, offer a CLO program.
Credit risk differences across the CLO classes are a result of structuring the CLO classes in an order of priority with respect to cash flows.
The securities offered in the CLO have not been registered under the Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States absent registration or pursuant to an exemption from the registration under the Securities Act and applicable state securities laws.
This award reflects our continued commitment to clients and underscores the breadth of our expertise in the CLO space.
CLO Collateral Performance: TFG's CLO average portfolio statistics continued to outperform market-wide default and CCC-asset holding averages, as credit quality improved during the quarter.
Linda Pace, Carlyle managing director and leveraged loan portfolio manager, said, "While the current market dynamics remain challenging for all participants, our extensive CLO experience and expertise enabled us to swiftly raise this new CLO.
BOSTON -- Salus Capital Partners LLC ("Salus") today announced the closing of Salus CLO 2012-1, Ltd.
Nasdaq: ACAS) ("American Capital" or the "Company") announced today that an affiliate, ACAS CLO 2015-2, Ltd.