I'm curious about the profit-making mechanism of CLOs. Could someone explain how they generate income or revenue? I'd like to understand the financial dynamics behind their operations.
5 answers
CherryBlossomDancing
Fri Nov 22 2024
Payments on the loans are made on a monthly or quarterly basis.
CharmedEcho
Fri Nov 22 2024
A CLO raises funds for the purpose of acquiring a specific portfolio.
CryptoChieftain
Fri Nov 22 2024
This portfolio comprises approximately 150 to 300 leveraged loans.
Sofia
Fri Nov 22 2024
These loans are utilized as the company's primary assets or collateral.
SumoMighty
Fri Nov 22 2024
The interest rates on the loans are floating, meaning they can fluctuate over time.