Unlocking the Strategic Potential of CLOs for Institutional Portfolios
Unlocking the Strategic Potential of CLOs for Institutional Portfolios
In today’s elevated interest rate environment, institutional investors—including insurers, pensions, and family offices—are seeking smarter ways to enhance yield, manage risk, and diversify portfolios. Collateralized Loan Obligations (CLOs), once considered niche, are now emerging as a powerful tool across the credit spectrum.
This landing page brings together three key research papers that explore the evolving role of CLOs—from investment-grade tranches to BB-rated opportunities—and how they can be strategically implemented to support long-term financial objectives.
1. Investment-Grade CLOs: A Resilient Fixed Income Alternative
Explore how AAA to BBB-rated CLO tranches offer:
- Higher yields than similarly rated corporate bonds
- Strong structural protections and liquidity
- Lower historical default rates—even during market stress
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Investment Grade CLO Tranches for Insurers: A Relativist’s Guide |
2. CLO BBs: From Niche to Strategic
Discover how BB-rated CLO tranches have evolved into reliable sources of income and diversification. This paper highlights:
- Regulatory and structural catalysts driving adoption
- Attractive yields and low impairment rates
- Growing interest from pensions, insurers, and family offices
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From Niche to Strategic: The Institutional Case for CLO BBs |
3. CLO BBs – Part II: Implementation in Loan Portfolios
Take the next step from theory to practice. This follow-up report shows how modest allocations to CLO BBs can:
- Boost total return and credit quality
- Modernize exposure to floating rate assets
- Deliver diversification and ratings stability
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Part II - Implementation: Increasing the Total Return and Credit Quality of Bank Loan Portfolios by Incorporating CLO BBs |
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