Evolution Of An Asset Class: The Case For CLO BB Debt Today
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XA Investments41 FollowersFollow5ShareSavePlay(20min)CommentsSummaryIn recent years, the landscape of Collateralized Loan Obligation BB-rated debt has undergone a quiet but profound transformation.The evolution of CLO BB debt is challenging long-held assumptions, namely, that CLO BB debt is inherently fragile during periods of volatility and its recovery prospects are lengthy and limited.Institutional investors have long been informed participants in CLOs, but their approach is evolving.
Images By Tang Ming Tung/DigitalVision via Getty Images In recent years, the landscape of Collateralized Loan Obligation (CLO) BB-rated debt has undergone a quiet but profound transformation. Once viewed as niche instruments offering a complexity premium to compensate for perceivedThis article was written byXA Investments41 FollowersFollowXA Investments LLC (“XAI”) is a Chicago-based firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory services, the firm also provides investment fund structuring and consulting services focused on registered closed-end funds to meet institutional client needs. XAI offers custom product build and consulting services, including development and market research, marketing, fund management and administration. XAI believes that the investing public can benefit from new vehicles to access a broad range of alternative investment strategies and managers. XAI provides individual investors with access to institutional-caliber alternative managers. XAI has approximately $405 million in assets under management and $654 million in assets under investor services and secondary market support as of December 31, 2021. For more information, please visit www.xainvestments.com. For information on XAI’s privacy policies, please visit xainvestments.com/privacy-policy.