Cryptocurrency Q&A What is a CLO in trading?

What is a CLO in trading?

MountFujiView MountFujiView Wed Nov 20 2024 | 6 answers 1359
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. What is a CLO in trading?

6 answers

CryptoLord CryptoLord Fri Nov 22 2024
They are backed by a diversified pool of loans, which serve as their underlying assets.

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SumoHonor SumoHonor Fri Nov 22 2024
CLOs are structured into different tranches, each with distinct risk and return characteristics.

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Dario Dario Fri Nov 22 2024
Investors in the lower-level tranches of CLOs typically face higher risks.

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CryptoTitan CryptoTitan Fri Nov 22 2024
Collateralized loan obligations (CLOs) represent a unique type of security.

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SilenceSolitude SilenceSolitude Fri Nov 22 2024
However, these investors also have the potential to earn greater returns.

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