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Pros And Cons Of Collateralized Loan Obligations

Monday, April 30, 2012 - 6:16 AM
From the Wall Street Journal
As the economy improves, investors have shifted to riskier investments, such as stocks and junk bonds. Lately, more have taken an interest in so-called leveraged loans, or those made by banks to companies with lower credit ratings. These loans can have sizable yields, a nice feature in a world where Treasurys and investment-grade bonds offer skimpy interest rates. Lately, more of these loans have been placed in vehicles called collateralized loan obligations.

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Ken TuminKen Tumin5,471 posts since
Nov 29, 2009
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