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Data from JPMorgan suggests investors who sold their positions in CLO equity tranches during the...

Mar. 25, 2013 5:53 PM ETBy: Colin Lokey, SA News Editor1 Comment
Data from JPMorgan suggests investors who sold their positions in CLO equity tranches during the crisis missed out on returns of 20% or more. This realization is fueling demand for the junior-most tranches in collateralized deals and lighting a fire under the market for what many consider to be "exotic" financial instruments. At $23B through mid-March, CLO issuance is on pace to break the previous quarterly record of $26B set in early 2007. What risk? 

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