CLOs: Finding Attractive Value Today

Co-Head of Structured Credit Investments, Melissa Ricco provides insight into the current dynamics driving the collateralized loan obligation market and why she and the team are seeing compelling opportunities, particularly at the top of the capital stack.

Episode Segments:

(01:28) - The impact of higher rates and an uncertain macro backdrop on CLOs

(03:50) - The fundamental outlook and why CLOs may have less risk than loans

(05:29) - The default outlook

(07:43) - How credit rating downgrades can impact CLO cashflows

(09:28) - Why cashflow diversions have been accretive to equity in the past

(12:26) - How current supply/demand dynamics are shaping the outlook

(15:28) - Understanding manager tiering

(19:11) - Where the team is seeing value today

(22:34) - Parting thoughts for those allocating to CLOs

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