collateralised loan obligation
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.
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. . 2010.

Look at other dictionaries:

  • Collateralised Loan Obligation — In diesem Artikel oder Abschnitt fehlen folgende wichtige Informationen: Entwicklungsgeschichte Du kannst Wikipedia helfen, indem du sie recherchierst und einfügst. Eine Collateralized Loan Obligation i …   Deutsch Wikipedia

  • collateralised 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

  • Collateralised debt obligation — Un CDO (pour collateralized debt obligation, en français : « obligation adossée à des actifs », est une structure de titrisation d actifs financiers de nature diverse. Il s agit de titres représentatifs de portefeuilles de créances …   Wikipédia en Français

  • collateralised loan obligations — (CLO) 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. See also …   Law dictionary

  • collateralized loan obligation — collateralised loan obligations (CLO) 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 …   Law dictionary

  • 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 priority ranking, issued by a special… …   Law dictionary

  • 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 — Ein forderungsbesichertes Wertpapier (englisch: „asset backed security“, kurz „ABS“) ist ein verzinsliches Wertpapier, welches Zahlungsansprüche gegen eine Zweckgesellschaft (englisch: „Special Purpose Vehicle“, kurz „SPV“) zum Gegenstand hat und …   Deutsch Wikipedia

  • collateralized loan obligations — collateralised loan obligations (CLO) 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 …   Law dictionary

  • Covered bond — Titrisation La titrisation est une technique financière qui consiste classiquement à transférer à des investisseurs des actifs financiers tels que des créances (par exemple des factures émises non soldées, ou des prêts en cours), en transformant… …   Wikipédia en Français

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.