Despite negative connotations, CLOs have proven a remarkably resilient instrument, argues 3i Debt Management’s Andrew Bellis
In the late 1980s a team at Drexel Burnham Lambert created the world’s first CBO (collateralized bond obligation). That financial product, which would spawn a number of siblings such as CDOs (collateralized debt obligations) and CLOs (collateralized loan obligations) significantly influenced the financial markets and became synonymous (rightly or wrongly) with the recent financial crisis.
