Episode Details
| Title | Structured Credit Maven Laila Kollmorgen on CLO’s Rally and Opportunity To Differentiate As Fundamentals Soften and Prices Climb | VanEck Fireside Chat #6 |
|---|---|
| Date | 9/11/2024 |
| Podcast | Forward Guidance ↗ |
Key Insights
Bullish:
- 🟢 $CLO - CLOs are recommended as a strong investment due to their consistent performance, ability to increase portfolio yield, reduce duration, and improve Sharpe ratios. They have outperformed other fixed income assets, particularly in rising rate environments due to their floating rate nature.
- “CLOs have been the best performing fixed income asset class in 8 of 11 years.” - Laila (16:03)
- “We have demonstrated that if they had an allocation of 10 or 20% to CLOs, 2 things happen. 1st, they're able to increase the yield on their portfolios. They're able to, secondly, reduce duration in their portfolios. And thirdly, they are able to increase their Sharpe ratios.” - Laila (19:03)
- “CLOs were the only asset class that returned a positive that year, and that is because it is floating rate.” - Laila (16:03)
- 🟢 $EXPCLOMGR - 🔒
Bearish:
- 🔻 $OVERVALCLO - 🔒
- 🔻 $ILLIQCLO - 🔒