The chapter explores the detailed structure of CLO investments, emphasizing the importance of attention to detail and accuracy in modeling. It delves into the mechanics of unwinding a CLO at the end of its life cycle, discussing factors influencing the decision to keep or sell, such as financing costs and liquidation value. Additionally, it delves into strategies for maximizing returns, growth prospects in the industry, and ends on a personal note about the speaker's passion for Jiu Jitsu.
Shiloh Bates is the Chief Investment Officer at Flat Rock Global, an alternative credit manager specializing in the junior tranches of CLOs. Last year, Shiloh published CLO Investing, a comprehensive review of the structure, payoff rules, and historical performance of CLOs. Our conversation covers Shiloh's twenty-five years spent in and around the space, an overview of the market, the characteristics of CLOs, the attractiveness of CLO equity relative to other credit opportunities, and Flat Rock’s approach to investing in CLO equity and BBs.
Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership