I'm exploring the financial landscape and have come across the term CLO. I'm curious to understand if a CLO qualifies as an investment company, given its structure and operations in the market.
5 answers
ShintoSanctuary
Fri Nov 22 2024
CLOs purchase these loans from various industries, diversifying their portfolio across different sectors.
Federica
Fri Nov 22 2024
CLOs are financial entities that engage in a specific type of investment activity.
ShadowFox
Fri Nov 22 2024
By doing so, they aim to mitigate the risk associated with individual loan defaults and generate returns for their investors.
KimchiChic
Fri Nov 22 2024
They primarily focus on acquiring leveraged loans, which are financial instruments that provide financing to corporate borrowers.
KimonoElegance
Fri Nov 22 2024
These borrowers are typically non-investment grade, meaning they have a higher risk of default compared to investment-grade companies.