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

|By:, SA News Editor

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.