"For institutional investors looking for diversification strategies,
collateralized loan obligations can be a stable option that provides downside protection in an uncertain macro environment. A market that tops $1 trillion,
CLOs are floating-rate instruments that sit within the larger
structured credit market. They have different
tranches, each with its own risk-reward profile, cash flow structure and credit rating. As such, CLOs can fit into different allocation sleeves within an institutional portfolio. CLO managers Barings, Polen Capital and Sycamore Tree Capital Partners dig into current market dynamics and the potential impact of lower rates on the asset class. They unpack what increased CLO issuance means for investors and highlight manager characteristics needed to successfully navigate this market."
https://www.pionline.com/CLOs-strategy2024