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Are Pension Funds Fiddling With Another CLO Time Bomb?

Pension Pulse

Pension plans and insurers have been piling into funds that invest in equity tranches of collateralized loan obligations in recent months, according to several asset managers who spoke on the condition of anonymity. Yet it has an appeal because of its greater claim to profits depending on the strength of the underlying collateral.

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Citigroup (C) Q1 2024 Earnings Call Transcript

The Motley Fool

Over the last several years, we've maintained a strong risk appetite framework and have been very deliberate about how we deploy our deposits and other liabilities into high-quality assets. And our investment bank and commercial bank are going to be closely coordinated to harvest the deal flow around the world.

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Walker & Dunlop (WD) Q1 2024 Earnings Call Transcript

The Motley Fool

Importantly and atypically, over half of our Q1 debt brokerage deal flow was on non-multifamily assets in retail, hospitality, industrial, and office. While some deals will need to be adjusted or even reworked, many deals remain on track. We have a track record of doing that and we'll continue to do that.

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CPP Investments Aims to Double Credit Holdings Over Next Five Years

Pension Pulse

“And because we have direct investment expertise, we can do co-investments or work on opportunities with those partners on sizable deals.” CLOs Return A revival in the market for collateralized loan obligations could provide another boost to deal activity, Edgell said.

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Omega Healthcare Investors (OHI) Q4 2023 Earnings Call Transcript

The Motley Fool

And it's collateralized as well by the equity interest in that private investment. So it's well collateralized, high net worth individual with great track record. Do you see that going forward of continuing to bridge that gap in the capital markets, or is there another color that you are seeing in the deal flow?

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Transcript: Armen Panossian

The Big Picture

Panossian ] 00:08:19 The liabilities, obviously the hedge funds had redemptions. Now they’re suffering from high rates because they have floating rate liabilities that they never hedged. There were so much for selling from the, something called SIVs, the special investment vehicles, right. That had mismatched assets.