After the financial crisis, 2011 saw a revival in the United States of offerings of collateralized loan obligations (CLOs), one of the structured credit products that proved resilient during the financial crisis. CLOs primarily invest in loans to non-investment-grade commercial and industrial enterprises and, unlike collateralized debt obligations (CDOs), which invest in mortgage-backed securities, CLOs suffered few events of default and still fewer liquidations that resulted in losses to investors.
Click here to read the article in which partner Craig Stein discusses the evolution of CLOs and changes in regulations affecting CLOs since the financial crisis.