hard · Debt Capital Markets
A CLO equity investor's return is primarily derived from which component of the structure?
- The management fees paid by the loan originators.
- The principal recoveries from defaulted loans in the collateral pool.
- A fixed coupon that ranks senior to the Class A debt tranche.
- The excess spread between the loan portfolio's interest income and the cost of the rated debt tranches.
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More Debt Capital Markets practice
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