Collateralized Loan Obligations (CLOs) – More Math, More Models, More Mayhem?

John Kerschner, head of U.S. securitized products at Janus Henderson, points out that collateralized loan obligations (CLOs) differ in dramatic ways from collateralized debt obligations (CDOs), which many blame for igniting the Great Recession of 2007-09 – despite having related structures and a certain reliance on quantitative risk models. Join us for this insightful discussion, as Kerschner highlights how the math, the models, and the makeup are different for CLOs than they were for CDOs – and why investors shouldn’t view them as a catastrophic threat to the global financial markets.     Note: Any performance figures mentioned in this podcast are as of the date of recording (August 11, 2022).  Also, all references to CDOs in this podcast refer to collateralized debt obligations: https://en.wikipedia.org/wiki/Collateralized_debt_obligation