medium · Private Credit & Debt documentation-covenants-terms
A CLO equity tranche (50M) is supported by a 500M loan pool yielding SOFR + 375 bps. Liabilities total 450M with a blended cost of SOFR + 200 bps. Annual management and admin fees are 55 bps of total assets.
What is the estimated annual cash-on-cash yield to equity (assuming no defaults)?
- 11.2%
- 14.0%
- 17.5%
- 19.5%
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