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Talk Your Book: CLOs – The Providers of Leverage

Animal Spirits Podcast

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CLO Equity: A Better Bank

The best vintage for CLOs prior to the financial crisis was 2007. They generated a median return to equity investors between 18% and 19%. Not because they had great credits, but because they could reinvest when loans were at 65 cents on the dollar for everything else. First Republic is down 43% today. Frankly, had these banks own CLO triple A's instead of fixed rate mortgages, they might be in better shape today.

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