Most people who have heard of CLOs, or collateralised loan obligations, will have heard of them in the context of the financial crisis of 2007 and 2008. However, whilst collateralised debt obligations, of subprime mortgages have vanished entirely following the crisis, CLOs have strengthened. In this pathway, you will learn the basics of a CLO: why CLOs exist, how CLOs are managed, and what protections are in place to protect the investment.
Watch all the videos and pass the test to obtain a certificate showing your completion of this Pathway. Certificates can be shared directly to your LinkedIn profile and social media accounts.
10 videos • 1 hour 50 minutes
A CLO, or collateralised loan obligation, is a fund that owns leveraged loans. In this video, Mike not only explains what a CLO is, but what purpose they serve and how they differ from other forms of securitisation.
Mike Peterson • 11:27
Most of the time, the key firm in any given CLO is its manager. However, there are other key figures in the CLO market. In this video, Mike will discuss the roles of these participants, including the manager, the arranger, the investors, the trustee and the collateral administrator.
Mike Peterson • 08:03
In Ian's series on CLOs, he will discuss the risks and valuation of these products. This video will cover the assessment of credit risks when deciding whether to purchase a bond. It will also consider what he terms "manager risk", which is the way in which manager actions can affect the risks and value of a bond.
Ian Robinson • 11:05
In this video, Mike Peterson explains why ESG must move up the priority list for managers and investors working within the CLO market. He explains why ESG has struggled to gain a foothold among CLO managers and how this can be remedied.
Mike Peterson • 10:49