- Collateralized Loan Obligations (CLOs) are frequently confused by all but the most sophisticated investors with Collateralised Debt Obligations (CDOs), which were seen by many as the cause of the Global Financial Crisis ((GFC)).
- US CLO markets re-opened after a brief slowdown in March and April 2020, with issuance gradually increasing amid tightening liability spreads.
- The COVID shock for CLOs can be characterized as sharp but short, due to the unprecedented and swift response in fiscal and monetary stimulus including QE and TALF.
For further details see:
Why Have CLOs Prospered Since The Pandemic?