11Varieties of CLO

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Different vintages of CLO have different structures, with each successive generation of deals tending to bolt additional features onto an already complex product.

CLOs are not standardised products. They share many features with each other but there are a small differences between almost any two deals, even of the same vintage.

CLOs launched since 2009, when the market re-emerged from the financial crisis, are often referred to as CLO 2.0s and older deals as CLO 1.0s. The difference between the two products has eroded over time, but CLO 2.0s remain distinct from older deals in several key respects.end



A resurgent market: amount of new CLOs issued by quarter ($bn)

Source: CLO-i.




Turn to the print version of the CLO guide to find out:

The differences between 1.0 and 2.0 CLOs.

How broadly syndicated and mid-market CLOs differ.

What the terms “balance sheet CLO” and “arbitrage CLO” mean, and why this is not a robust distinction.

How multi-currency CLOs help managers to buy assets in more than one currency.