CLO is a financial product and I want to understand its profit-making mechanism. Specifically, I'm interested in knowing how CLO generates revenue and earns money for investors.
7 answers
SumoMight
Sat Nov 23 2024
A CLO operates by raising funds for a specific purpose.
Valentino
Fri Nov 22 2024
Payments of interest are made on a monthly or quarterly basis.
KpopStarletShine
Fri Nov 22 2024
These funds are utilized to acquire a diversified portfolio of leveraged loans.
DigitalDragon
Fri Nov 22 2024
The number of loans in this portfolio typically ranges from 150 to 301.
Giulia
Fri Nov 22 2024
The interest rate paid is based on a spread above a benchmark index, such as SOFR.