CLOs to Demand Higher Rates From B3 Companies, THL’s Herzig Says

The transcript discusses the collateralized loan obligation (CLO) market, highlighting its resilience over 25 years despite economic weaknesses and industry-specific challenges. It addresses concerns about constraints on low-rated debt and the potential for forced selling, clarifying that institutional investors are not forced sellers. The discussion also covers the strong institutional investment in CLOs, the impact of Japanese investment, and the market's future outlook.

What is the significance of the constraints on the lowest rated debt that psilos can buy?

How do institutional vehicles differ from retail funds in the context of the silo market?