Investors of CLOs are paid a percentage of the value increase in their portfolios, and thus, it is of great importance that they evaluate and manage the fundamental credit risks before purchasing, trading out of, or holding on to bonds.
Key learning objectives:
Identify all the inherent credit assessment checks/tests
Explain the importance of hedging and diversification in portfolio management
Define manager risk, and outline the key questions to ask a collateral manager
The Basel Committee Perspective on Operational Risk
Peter Eisenhardt • 18:32