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Monday, Mar 25
Data from JPMorgan suggests investors who sold their positions in CLO equity tranches during the...
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?