Manulife Investment Management - Mon, 09/09/2024 - 18:17

CQS CLO Equity

What is a Collateralized Loan Obligation (CLO)?

For illustration only.

What is CLO Equity?

A CLO is a vehicle backed by a diversified pool of broadly syndicated leveraged loans.
The CLO raises capital by issuing various tranches of CLO debt and equity.
Equity investor owns first loss risk and receives cashflows generated from the difference between debt tranche financing cost and income on the loan portfolio.
The CLO manager underwrites the assets and purchases the underlying portfolio of loans. They then actively trade and reinvest the portfolio during a specified reinvestment period (typically 4.5 – 5 years).
After the reinvestment period ends, the structure begins to delever through underlying loan repayments.
The equity investor may elect by majority to refinance and extend the maturity of the structure, allow the portfolio to amortise and/or liquidate the portfolio.
European Union regulation requires risk retention by the originator/sponsor.

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Manulife Investment Management

Manulife Investment Management is the global wealth and asset management segment of Manulife Financial Corporation. We draw on more than a century of financial stewardship and the full resources of our parent company to serve individuals, institutions, and retirement plan members worldwide. Headquartered in Toronto and Boston, our leading capabilities in public and private markets are strengthened by an investment footprint that spans 19 countries and territories. Our private markets strategies include private equity and credit, real estate, infrastructure, timber, and agriculture. Responsible stewardship is integral to our business and culture, and we seek to be a global leader in creating long-term, sustainable, value for our stakeholders.

Amy Theuninck
Managing Director, Insurance Solutions
atheuninck@manulife.com
857-328-6425

www.manulifeim.com
197 Clarendon St, Boston, MA 02116
United States

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