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The Differences Between CLOs and HY Bonds
This chapter provides an in-depth discussion on the differences between various types of Collateralized Loan Obligations (CLOs) and high-yield bonds (HY bonds). It explores the default rates and historical experiences of these securities, as well as the benefits of floating rates in CLO double B's. The speakers also discuss the monitoring process for secure ties loans and how traditional banks are now selling off loans to asset managers and CLOs.