Cryptocurrency Q&A How does CLO make money?

How does CLO make money?

CryptoWizardry CryptoWizardry Thu Nov 21 2024 | 7 answers 1799
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. How does CLO make money?

7 answers

SumoMight SumoMight Sat Nov 23 2024
A CLO operates by raising funds for a specific purpose.

Was this helpful?

290
57
Valentino Valentino Fri Nov 22 2024
Payments of interest are made on a monthly or quarterly basis.

Was this helpful?

228
87
KpopStarletShine KpopStarletShine Fri Nov 22 2024
These funds are utilized to acquire a diversified portfolio of leveraged loans.

Was this helpful?

250
79
DigitalDragon DigitalDragon Fri Nov 22 2024
The number of loans in this portfolio typically ranges from 150 to 301.

Was this helpful?

103
31
Giulia Giulia Fri Nov 22 2024
The interest rate paid is based on a spread above a benchmark index, such as SOFR.

Was this helpful?

210
21
Load 5 more related questions

|Topics at Cryptocurrency Q&A

Get the BTCC app to start your crypto journey

Get started today Scan to join our 100M+ users

The World's Leading Crypto Trading Platform

Get my welcome gifts