Cryptocurrency Q&A How do CLOs make money?

How do CLOs make money?

DondaejiDelightfulCharm DondaejiDelightfulCharm Wed Nov 20 2024 | 5 answers 1125
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. How do CLOs make money?

5 answers

CherryBlossomDancing CherryBlossomDancing Fri Nov 22 2024
Payments on the loans are made on a monthly or quarterly basis.

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CharmedEcho CharmedEcho Fri Nov 22 2024
A CLO raises funds for the purpose of acquiring a specific portfolio.

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CryptoChieftain CryptoChieftain Fri Nov 22 2024
This portfolio comprises approximately 150 to 300 leveraged loans.

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Sofia Sofia Fri Nov 22 2024
These loans are utilized as the company's primary assets or collateral.

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SumoMighty SumoMighty Fri Nov 22 2024
The interest rates on the loans are floating, meaning they can fluctuate over time.

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