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 ?
There is a wide range in trustee reported market values for defaulted loans across CLOs with exposure, highlighting the illiquid nature of distressed or defaulted loans held by MM CLOs.
CLOs often earn a higher rate of return compared to more "traditional," similarly rated bonds, such as corporate bonds, due in part to their complex structure.
The 22-year-old added of his relationship with Le Clos: "We have a lot of banter with each other and it's all about social media and ramping things up.
CLOs were swept into the Dodd-Frank Act's risk-retention rules as politicians blamed lax underwriting of structured securities for fueling the financial crisis.
Over the last four years, CLOs have become recognized throughout the fleet as the customer order fulfillment focal point for deployed customer sustainment for subsistence, high usage load list, fleet issue load list, aviation ordnanceman deckload, and fleet freight within their respective theaters.
The agreement will see Groupe GM lead the distribution of the newly-launched Le Clos Chardonnay amenity line, the Le Clos Chardonnay Vintage from Domaine Rene Bouvier.
No le voy a pedil legalos a Santa Clos: te voy a dital una calta pala el goldo vestido de lojo
Byline: BERT LE CLOS Father of South African swimmer Chad le Clos
The US Federal Reserve will give banks two more years to divest collateralized loan obligations (CLOs) that fall under the Volcker rule, a part of the Dodd-Frank financial law that bans banks from making a range of risky investments.
According to the Chief Legal Officers (CLO) 2014 Survey from the Association of Corporate Counsel (ACC), ethics and compliance (88 percent), regulatory or government changes (83 percent) and information privacy (79 percent) are top of mind issues for CLOs around the world.
Tokyo: South Africa's Chad Le Clos was woken up by a "scary" earthquake but took care of business as usual as he stormed to victory in the 100 metres butterfly at on Sunday's World Cup series in Tokyo.