Hedgeye Podcasts

Ep.125 Real Conversations → CLOs Demystified: The Hidden Engine of Yield In Credit Markets w/ Danielle Gilbert, Eldridge Capital Management

May 21, 2025
Join Danielle Gilbert, Managing Director at Eldridge Capital Management, as she unpacks the mysteries of Collateralized Loan Obligations (CLOs). With extensive expertise in structured credit, she discusses the evolving CLO landscape, the impact of macro volatility on yields, and the significance of understanding credit quality. Gilbert also highlights how institutional capital is adapting, the advantages of CLOs over traditional investments, and effective risk management strategies needed during market fluctuations. A crucial listen for investors navigating today’s credit markets!
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ANECDOTE

Danielle's Career in Structured Credit

  • Danielle Gilbert shared her career journey starting at UBS trading floor in structured credit.
  • She evolved with the market and now leads CLO-focused ETFs at Eldridge Capital Management.
INSIGHT

CLO Structure Basics

  • CLOs give access to senior secured loans with a buffer against default.
  • Investors choose tranches from AAA to BBB or equity based on risk-return preference.
INSIGHT

Key Differences: CLOs vs CDOs

  • CLOs differ from CDOs by having senior secured loans, active management, and industry diversification.
  • CLOs show much lower default rates historically than the infamous CDOs linked to the housing crisis.
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