Collateralized Loan Obligations (CLOs)


From asset-backed securities to credit-linked notes, our securitization courses are designed to include all aspects of securitization. Securitization is the process through which loans or debts are pooled together to create a new debt security. Although corporate debt is typically an IOU, by which the issuer agrees to pay interest in addition to repaying the principal amount borrowed, the note created in the securitization process relies on the underlying loans used in the pooling process to pay interest and repay debt.

  • Date: TBD 2023
  • Recommended CPE Credits: 2.4
  • Duration: 2 Hours
  • Time: 1:00-3:00 p.m. ET



Collateralized Loan Obligations (CLOs) are securitized pools of leveraged bank loans. The underlying loans are generally made to companies that are below investment grade. Given their low credit quality of the collateral, how do some of the classes receive investment grade ratings? How has the coronavirus impacted the health of these loans? What impact do so-called “cov-lite” terms have on these deals? These questions and others are explored in this virtual training. Pre-sale reports from actual deals are utilized to illustrate how different managers structure CLOs to capture “deal arbs.” The benefits and risks of refinancing entire structures with embedded call features are also assessed.

Course Objectives

By the end of the course, participants will be able to:

  • Describe the features and characteristics of leveraged loan collateral
  • Evaluate the role of CLO managers and the benefits and risks of active management
  • Discuss fundamental pricing concepts
  • Identify the factors that would create incentives to refinance CLOs in different rate environments

Suggested Prerequisites:

  • Fundamentals of the Capital Markets/Securities Industry
  • Fixed Income or equivalent knowledge

Program Level: Foundational

Target Audience: Anyone who wants to learn about the collateralized loan markets, such as staff from middle office, operations, IT, compliance, legal, or HR, and regulators who work closely with various aspects of the securitized markets.

Advance Preparation: None

Computers and Financial Calculators: N/A

Recommended CPE Credits: 2.4

Duration: 2 hours

Time: 1:00-3:00 p.m. ET

Price: $279/learner