I'm trying to understand financial trading, and I came across the term 'CLO'. I'm not familiar with this acronym and would like to know what it stands for and how it relates to trading.
6 answers
CryptoLord
Fri Nov 22 2024
They are backed by a diversified pool of loans, which serve as their underlying assets.
SumoHonor
Fri Nov 22 2024
CLOs are structured into different tranches, each with distinct risk and return characteristics.
Dario
Fri Nov 22 2024
Investors in the lower-level tranches of CLOs typically face higher risks.
CryptoTitan
Fri Nov 22 2024
Collateralized loan obligations (CLOs) represent a unique type of security.
SilenceSolitude
Fri Nov 22 2024
However, these investors also have the potential to earn greater returns.