CLOs: Lower Duration Risk and Pick Up Yield
With higher relative yields, a history of strong risk-adjusted returns, and protection against rising rates, we believe there is a strong case for a strategic allocation to Collateralized loan obligations (CLOs) within an income portfolio. Over the long term, CLOs have historically performed well relative to other corporate debt categories, particularly when a broad investment grade approach is taken. CLOs are also structured to help mitigate risk, with subordination to absorb losses and other built-in protections. Furthermore, CLOs are floating rate instruments, which we believe makes them an attractive alternative in a rising rate environment.
Join VanEck Portfolio Manager, Fran Rodilosso, and PineBridge Portfolio Manager, Laila Kollmorgen for a discussion about the current market environment, how to approach CLO investing and how CLOs can fit into a portfolio.
Topics will include:
- How CLOs are structured, and the resulting features and benefits
- The case for investment grade CLOs now
- Why an active approach is needed in CLO investing
Accepted for one hour of CFP/CIMA CE credit for live and on-demand attendees
CFA Institute members are encouraged to self-document their continuing professional development activities in their online CE tracker.
Fran RodilossoHead of Fixed Income ETF Portfolio Management
William SokolDirector of ETF Product Management
Laila Kollmorgen, CFAPortfolio Manager, CLO Tranche