collateralized loan obligation
- collateralized loan obligation
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International
Also referred to as CLO. Structured finance instruments (being debt securities (debt security) in the form of bonds or notes) which are backed, that is funded by and secured over, a portfolio of loans.
+ collateralized loan obligation (CLO)
USA
A type of debt security, typically issued by a special purpose entity, created to securitize large pools of corporate loans (other than mortgages). The CLO issuer will hold and manage several tranches of loans grouped by credit rating; with each tranche having the right to the collateral and payment stream of the underlying loans in descending order (lower rated tranches hold increasingly subordinated rights to the collateral and payment stream).
CLOs allow banks to remove the loans from their balance sheets, reduce regulatory capital requirements and improve their return on capital. CLOs are major institutional investors in the leveraged loan market.
See also
Practical Law Dictionary. Glossary of UK, US and international legal terms.
www.practicallaw.com.
2010.
Look at other dictionaries:
Collateralized loan obligation — Collateralized loan obligations (CLOs) are a form of securitization where payments from multiple middle sized and large business loans are pooled together and passed on to different classes of owners in various tranches. A CLO is a type of… … Wikipedia
collateralized loan obligation — ( CLO) A multi tranche security secured by a pool of corporate loans. Similar to the more familiar CMO, except that in a CBO the tiers or tranches are created with differing levels of credit quality. The CBO structure creates at least one tier of … Financial and business terms
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collateralized debt obligation — collateralised debt obligations (CDO) International Structured finance instruments (being debt securities (debt security) in the form of bonds or notes) which are divided into several classes or tranches of varying size, credit rating and… … Law dictionary
Collateralized debt obligation — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond … Wikipedia
Collateralized mortgage obligation — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond … Wikipedia
Collateralized fund obligation — A collateralized fund obligation (CFO) is a form of securitization involving private equity fund or hedge fund assets, similar to collateralized debt obligations. CFOs are a structured form of financing for diversified private equity portfolios,… … Wikipedia
collateralized loan obligation — noun a form of securitization where payments from multiple middle sized and large business loans are pooled together and passed on to different classes of owners in various tranches … Wiktionary
Collateralized Loan Obligation — (CLO) (облигация, обеспеченная кредитами) ценная бумага, обеспеченная пулом кредитов, выданных корпоративным заемщикам институциональными кредиторами, обычно коммерческими банками … Ипотека. Словарь терминов
