With interest rates at minimal levels for goodness knows how long, collateralized loan...


With interest rates at minimal levels for goodness knows how long, collateralized loan obligations - pools of loans to "junk"-rated firms - are staging a revival. Sales of CLOs, which produce a high yield, are over $6.8B this year so far. Despite the risk, CLOs have actually performed well, with not one defaulting during the credit crisis.

Comments (3)
  • 7footMoose
    , contributor
    Comments (2229) | Send Message
     
    I ask a second time, how does stuff that was considered doggy doo five years ago become a quality asset in today's market?
    5 Apr 2012, 06:25 AM Reply Like
  • bbro
    , contributor
    Comments (11219) | Send Message
     
    Check the interest rates ...bet they ain't quality...
    5 Apr 2012, 06:27 AM Reply Like
  • bbro
    , contributor
    Comments (11219) | Send Message
     
    And if the CLO blows up the investor can sue too....
    5 Apr 2012, 06:26 AM Reply Like
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