3min chapter

Money For the Rest of Us cover image

A "Safe" 6% Yield: The Case for Investment Grade CLOs

Money For the Rest of Us

CHAPTER

CLOs Are Not Cash Like

The default rates on CLOs is much lower than traditional non-investment grade bonds and credits. S&P also did a forward looking stress test. They looked at what would happen today if we had a great financial crisis scenario. The higher tranches because the yields are attractive, particularly relative to other cash offerings.

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