CLOs vs. CDOs: Understanding the Difference
Don’t mistake CLOs for CDOs—CLOs invest in senior secured loans and have built-in risk protections that have been tested through two major market crises.
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Don’t mistake CLOs for CDOs—CLOs invest in senior secured loans and have built-in risk protections that have been tested through two major market crises.
Fallen angel high yield bonds provide a distinct value proposition that sets them apart from the broad high yield market.
Over the past several years, CLOs within a core bond portfolio would have provided additional yield—without adding duration—as well as increased returns and lower volatility.
Higher interest rates can potentially pinch an assortment of income-generating asset classes, prompting investors to consider alternatives.
With investment grade corporate bond yields providing meaningful income and with elevated market volatility, we believe there are now opportunities in mispriced bonds with attractive valuations.