Collateralised Loan Obligations (CLOs)

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.




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10 video modules • 1 hour 50 minutes

  • What are CLOs?

    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 Peterson11:27

  • CLO Illustration

    In this video, Mike explains how a CLO comes into existence and outlines the key events in its life. To describe this process, he will use a real example, Sound Point Euro CLO 1.

    Mike Peterson09:56

  • Key Participants in CLO Transactions

    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 Peterson08:03

  • Arbitrage Opportunities in the CLO Context

    In this series of videos, Christos will explain how a CLO works. In this first video, Christos will start with the basic features which enable the CLO to fulfill its purpose.

    Christos Danias10:03

  • CLO Portfolio Risk Mitigation

    In this video, Christos will answer some questions pertaining to the key features and mechanics within a CLO to protect your debt.

    Christos Danias12:08

  • CLO Equity Return Optimisation

    CLOs are designed specifically to provide attractive returns to the equity investor. In this video, Christos will cover actions that can optimise an investment, including Calls, Refis and Resets.

    Christos Danias09:01

  • Managing Credit Risk in the Underlying CLO Portfolio

    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 Robinson11:05

  • Managing Market and Liquidity Risk in the CLO Context

    In this video, Ian will discuss how to assess the risks of a bond and its value as it changes over time and he will focus more on aspects of market risk and liquidity risk.

    Ian Robinson17:14

  • CLOs as an Asset Class During the GFC

    In Ian's final video on CLOs, he takes elements discussed in his previous two videos and explains how these factors played out during the financial crisis.

    Ian Robinson10:35

  • ESG in the CLO Context

    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 Peterson10:49

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